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Covid-19 catapults S importance for pension portfolio ESG makeup

Are swathes of ESG fund launches creating the next dotcom bubble?

Dotcom deja vu? The recent launches have been largely focused on climate and energy transition. The L&G Clean Energy Ucits is designed to invest in companies that are at the forefront of the United Nations Sustainable Development Goal 7; whereas the JP Morgan Carbon Transition Global Equity Ucits ETF will track the proprietary JP Morgan Asset Management Carbon Transition Global Equity Index. Meanwhile, Robeco has launched two fixed income strategies focused on climate – the Luxembourg-domiciled RobecoSAM Climate Global Credits and RobecoSAM Climate Global Bonds. Earlier in the year, there were Paris Agreement-aligned ETF launches from Amundi and Lyxor. Anyone who remembers the proliferation of technology funds launched during the height of the 1990s technology boom may be looking at these launches with some trepidation, remembering the slew of dotcom launches that characterised the last bubble.

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