Global investments company BNY Mellon announced today the launch of the BNY Mellon Responsible Horizons Corporate Bond ETF, an actively managed ESG bond ETF, targeting investments in issuers with superior ESG attributes.
The ETF is sub-advised by Insight North America, a subsidiary of Insight Investment, a BNY Mellon investment firm.
The ETF seeks a combination of capital appreciation and income-based returns while focusing on corporate debt securities issued by companies demonstrating investment attributes and business practices based on Insight’s ESG rating methodology, Prime, identifying key ESG risks and opportunities based on data and research. The ETF will target the best performers on ESG issues while avoiding the worst-ranked performers, while carefully considering the approach taken to investments in environmentally sensitive industries.
Svein Floden, Head of Intermediary Distribution at Insight, said:
“This is the first time that Insight has offered US ETF investors access to its ESG expertise. Responsible Investment is central to our philosophy and culture. We believe that our proposition is compelling and should stand out in a market where few products approach responsible investment via fixed income. We look forward to developing this product set for US investors.”
The ETF, which is listed on NYSE Arca, is the sixth actively-managed and fourth dedicated sustainable solution in BNY Mellon Investment Management’s ETF range. The fund is managed by Insight’s Fixed Income Group’s Erin Spalsbury and Jonathan Earle.
Andy Provencher, Head of North American Distribution, BNY Mellon Investment Management, said:
“This is an exciting addition to our growing ETF range as investors and advisors are increasingly looking for outcome-oriented strategies in more versatile investment vehicles. By leveraging Insight’s fixed income and responsible investment experience, we’re able to provide our clients with a sustainable investment solution through an actively-managed ETF vehicle. In partnering with Insight, a manager that takes ESG issues into account as an integral part of its credit analysis and investment process, we aim to achieve this goal.”
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