New currency-hedged ethical fund from Betashares

New sustainability fund selected by New Zealand life insurer for an institutional allocation.

Monday, December 18th 2023, 9:39AM

by Andrea Malcolm

Australian fund manager Betashares has launched a NZ dollar hedged version of its Global Sustainability Leaders Fund. This expands its range of NZ-domiciled PIE funds to six covering Australian, global and ethical equities plus fixed income.

The sustainability product gives exposure to a portfolio of 200 large cap global companies identified as ‘climate leaders’ with the currency exposure hedged back to the NZ dollar. It uses a broad set of ethical eligibility screens to exclude companies with exposure to fossil fuels, gambling, tobacco, armaments, human rights concerns and other activities deemed inconsistent with responsible investment considerations.

Betashares says it is expected to be available on leading platforms shortly. The Australian equivalent, the Betashares Global Sustainability Leaders ETF (ASX: ETHI), holds $2.7 billion in funds under management, making it Australia's largest ethical ETF.

Following a detailed scoping and review process, AIA New Zealand has selected the new fund and its existing unhedged equivalent, for an inclusion in its global equities’ investment portfolios.

AIA NZ acting chief product and investments officer Nick Sutherland says the life insurance provider is committed to environmental, social and governance (ESG) alignment.

Vinnie Wadhera, Betashares executive director – institutional and adviser services, says Betashares is looking forward to further developing its investment capabilities and expertise with New Zealand asset allocators and institutional investors to help them build better portfolios with our innovative range of investment solutions.

Betashares CEO Alex Vynokur, says the launch of the new fund signals the Australian fund manager's long-term commitment to New Zealand.

“We’re excited to expand the range of investment solutions available to investors seeking to meet the complementary goals of aligning their portfolio to their values and meeting their investment objectives within the highly efficient and beneficial PIE structure.”

Tags: BetaShares