DWS has launched Invest ESG (Environmental, Social and Governance) Euro Corporate Bond fund, a sustainable mutual fund ocusing on investment grade corporate bonds from the Eurozone.
The application of the sustainable minimum standards of DWS limits the pool of available securities by almost 20 percent in comparison to the traditional variant, the €2bn DWS Euro Corporate Bonds. Both funds are managed by Karsten Rosenkilde.
The fund management of DWS Invest ESG Euro Corporate Bonds applies the usual market exclusions for controversial sectors and for companies that violate the United Nations Global Compact. Furthermore, a strong best-in-class approach is pursued, which recognises pioneers and latecomers with regard to sustainability and takes the latter from the group of allowable securities. This best-in-class approach is based on a variety of individual ESG indicators and has an explicit focus on reducing CO2 emissions.
Joern Wasmund, head of Fixed Income, DWS, commented on the integration of ESG into DWS' investment processes: "DWS is determined to consider sustainability aspects in bond fund management. ESG criteria provides a standardised framework for the early identification of risks. This helps to avoid significant price losses and the opportunity to provide investors with a better risk-adjusted return."