ABN AMRO Investment Solutions today (4 June) unveiled its new ABN AMRO Boston Common Emerging Markets ESG Equities Fund, sub-managed by US investment house Boston Common AM, an active equity, ESG original asset manager.
The Paris-headquartered asset manager is the sole European distributor of Boston Common AM UCITS funds since the partnership began in 2020, and it will distribute this new fund, part of the AAF SICAV, to European investors exclusively through its platform.
Characterized by a research-driven process, the fund invests in a high-conviction portfolio of 40-60 high-quality, primarily large & mid-capitalization companies with strong ESG profiles based in Emerging Markets countries such as Brazil, China, Indonesia, and India.
This fossil fuel-free fund based on the Boston Common Emerging Markets Equity Strategy has a high-quality core ESG style that seeks companies addressing global sustainability challenges and opportunities, the statement said.
The fund will be managed by three experienced managers, Liz Su, CFA (lead), Matt Zalosh, CFA, and Praveen Abichandani, CFA.
They are supported by Boston Common’s ESG Research and Engagement team, which conducts proprietary in-depth ESG research and engages portfolio companies to promote long-term thinking, transparency, and accountability concerning climate, inequity, and human well-being.
The Boston Common Emerging Markets Equity Strategy, launched in 2012, currently manages around $370m.
Geeta Aiyer (pictured), president and founder at Boston Common AM, said: "Emerging Markets companies are among the leading sustainability adopters globally. As active, engaged investors with a strong history of investing in emerging markets, we have a holistic view of these dynamic opportunities. We look forward to introducing our strategy in a UCITS structure to the European clients of ABN AMRO Investment Solutions, with whom we have built a strong relationship over the past four years."
Bob Hendriks, chief commercial officer at ABN AMRO Investment Solutions, added: "By entrusting the European distribution of this new ESG Original fund to ABN AMRO Investment Solutions, Boston Common AM is enabling European investors to invest in some of the most promising companies operating in emerging markets. We believe that this is a strategic moment for the launch of a new ESG-focused UCITS Emerging Markets Equity Fund. Indeed, in the past year, the earnings growth expectations have moved higher for emerging markets compared to developed markets and the current equity valuation is at a near historic discount to developed markets."
He further said: "We are delighted to give our European clients exclusive access to this promising Boston Common strategy that seeks positive ESG impact and alpha generation. This step strengthens our partnership and enables us to reaffirm our shared values of authentic sustainable investing."
The fund will be available to clients residing in the following countries, exclusively: Luxembourg, Denmark, Germany, Netherlands, Belgium, France, Spain, Switzerland, Italy, Austria, Sweden.
