Columbia Threadneedle’s Emerging Equity ESG Fund | Crédits photo : Shutterstock
Columbia Threadneedle expands its emerging equity offering by launching Threadneedle (Lux) Emerging Market ESG Equities (Isin code: LU2135810740), a fund invested in emerging equities with a responsible investment approach focused on the systematic analysis of environmental, social and governance (ESG) factors. To select a security, the manager takes into account both fundamental analysis and ESG factors in order to identify growth opportunities and the risks inherent in companies in emerging countries. The emphasis is on innovative and quality companies that will be able to maintain a high return on capital and solid growth over the long term. The ability to gain a competitive advantage and gain market share are also criteria taken into account.
Maximum entry fee: 5%; annual management fees: 1.8%; minimum subscription: 2,500 euros.
The notice to invest
As long as we negotiate an entry fee of 2%, we have a positive outlook on this fund, as emerging equities have clearly underperformed since the start of the year, with an MSCI emerging equities index up 4.6% vs. 10.9% for the MSCI of global equities. While stocks from developed countries have become relatively expensive, they could take their revenge in the coming months. In addition, the addition of ESG constraints should allow risk reduction by selecting companies that are better managed than average.