Quintet Private Bank has introduced a multi-asset, climate-neutral investment fund.
Essential Portfolio Selection (EPS) Quintet Earth, a UCITS fund, combines equal exposure to green bonds and low-carbon equities while offsetting associated carbon emissions through reforestation activities. Quintet Earth launched with around £235 million in assets.
Green bond proceeds are exclusively invested in projects that generate positive environmental benefits, whereas a basket of low-carbon equities emits 70 per cent less carbon than conventional equities. The carbon emissions associated with those stocks are offset through the annual purchase of carbon credits derived from community reforestation projects, which remove carbon from the atmosphere while also supporting sustainable development.
Quintet Earth is managed by DWS which has around £737 billion in assets under management and a strong environmental, social, and governance focus. It replicates the Bloomberg MSCI Global Green Bond and MSCI World Low Carbon Equity Target indices with a passive structure.
Quintet Earth is a liquid, multi-currency fund with daily trading and a recommended holding period of 3-5 years. Within a regulated and diverse fund structure that is transparently priced, both institutional and retail share classes are available. Monthly performance is reported, including green bond use-of-proceeds and community reforestation benefits.
Carbon offset activities are managed in partnership with Myclimate, a non-profit organisation that supports more than 125 climate-protection projects in 37 countries.
Quintet Group CEO Jakob Stott says: “We firmly believe that companies that are better prepared for the impact of climate change on their business – which builds resiliency and carefully manage associated risks – are better positioned for growth. Quintet Earth reflects that core belief, in full alignment with our ambition to be the most trusted fiduciary of family wealth.
“Quintet Earth also captures something even deeper and more meaningful: the urgent necessity to build a cleaner and healthier world. In service to our clients and together with our partners, we are committed to the long-term success of Quintet Earth – and to ceaseless innovation in sustainable finance.”
Quintet group head of sustainable investment James Purcell says: “Quintet Earth makes a simple promise: Generate competitive long-term, risk-adjusted returns while simultaneously combating climate change.
“The structure of the fund is intentionally easy to understand because we know that, when it comes to sustainable investing, everyone is tired of navigating a jungle of jargon. The fund stands apart because it is entirely transparent, with an accessible ‘reduce, transform and remove’ framework.
“Quintet Earth makes a clear statement about our firm and the road we will continue to travel: putting clients first, delivering performance and safeguarding our shared future.
DWS global head of passive sales Simon Klein says: “DWS has a long history of providing efficient index-tracking solutions. We are pleased to deploy that expertise in support of Quintet’s new fund, which we’re sure will be a great success.”
Myclimate head of corporate partnerships Kathrin Dellantonio says: “Sustainable investing is a critical driver of transforming to a cleaner and better world. Offering a transparent solution that contributes to this long-term transformation, Quintet is also supporting impactful, nature-based carbon-capture projects. We are delighted to be their climate protection partner of choice.”