New currency-hedged ethical fund from Betashares

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.