State Street’s ESG fund surpasses £1bn

This pushes the Boston-based firm to $2.9 trillion total AUM

State Street Global Advisors (SSGA) has announced its ESG index equity fund has surpassed £1bn in assets.

Boston-based SSGA, the asset management arm of State Street Corporation, said its ACS multi-factor global ESG index equity fund has exceeded the £1bn AUM milestone is just over six months.

The passively-managed fund targets the MSCI World Select 5-Factor ESG Low Carbon Target Index.

The company, which has over 30 years’ experience in ESG leadership, currently has around $206bn of ESG-specific assets under management, according to its website.

In total, the firm has $2.9 trillion assets under management as of 30 June 2019, making it the third largest asset manager in the world.

“We believe that superior long term performance can be achieved when companies take their responsibilities to people and the planet seriously”, Jenny Yoe, managing director, head of UK and Ireland institutional for State Street Global Advisors, said.  “Investors are increasingly interested in understanding the positive relationship of ESG integration to fund performance.”

Ana Harris, head of equity indexed strategies at State Street Global Advisors, added: “The fund allows investors to build an equity allocation with an improved carbon footprint and ESG profile relative to the broader market.

“We closely monitor ESG exposures across the fund to ensure an appropriate balance of factors are maintained at all times,” Harris said.

As a strong proponent of ESG and climate investing, SSGA has been vocal about the need for greater disclosure on environment, social and governance issues.

Last month it wrote to the Hong Kong Stock Exchange supporting its plans to make listed companies publish statements about ESG-related risks and urged Hong Kong to embrace the work of Sustainability Accounting Standards Board (SASB) as a means to standardise ESG reporting.