HANetf and Saturna Capital Partner to Launch First Actively Managed, Sustainable ETF with Carbon Offset in Europe

Saturna Capital and HANetf are delighted to announce the launch of an actively manged, sustainable ETF, the Saturna Sustainable ESG Equity HANzero™ UCITS ETF (ticker: SESG) ‘SESG’. The ETF launched via the HANetf platform and listed the London Stock Exchange on Friday 9th July.

The Saturna Sustainable ESG Equity HANzero™ UCITS ETF (ticker: SESG) will be the second ETF in Europe and the second on the HANetf platform to incorporate carbon offsetting, in order to give environmentally conscious investors the opportunity to target capital growth with the reassurance that any carbon emissions linked to their investment will be offset. HANetf’s carbon offsetting brand is known as ‘HANzero™’ and will work in conjunction with carbon offset specialists, South Pole, to directly neutralise the carbon emissions of their investments through projects such as Topaiyo Forest Conservation in Papua New Guinea and the Musi River Hydro Plant in Sumatra, Indonesia. The SESG ETF is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).  When you trade ETFs your capital is at risk.

The SESG sustainable ETF is actively managed by Saturna Capital, global asset managers with over 30 years’ experience in socially responsible investing and with over $5billion assets under management.  The ETF will follow the same investment strategy as Saturna’s US-based sustainable equity mutual fund that launched in 2015 and is run by the same managers, Jane Carten, MBA and Scott Klimo, CFA, and has a 5-globe rating from Morningstar1.

The Saturna philosophy and process aims to generate consistent and sustainable market-beating returns by seeking companies that demonstrate sustainable financial characteristics such as management strength, sustainable and growing cash flows, low debt, and strong balance sheets.

The fund positively screens for ESG factors such as companies demonstrating excellent corporate governance, a commitment to reducing environmental impact in the areas of carbon emissions, water and waste and positive social characteristics. Negative screening excludes companies engaged in higher ESG risk businesses (eg no alcohol, weapons, gambling or fossil fuel extraction).  The fund invests globally and is benchmark agnostic in terms of geographic and industry allocations creating a globally diversified fund.

When you trade ETFs your capital is at risk.

Jane Carten, CEO of Saturna Capital, said:  “Saturna Capital has managed socially responsible investments via its US-based family of Shariah-compliant funds since the firm’s founding in 1989. 30+ years of experience in socially responsible investing led us to launch the Saturna Sustainable Funds in 2015, with a specific commitment to ESG investing and we are delighted to bring the Saturna Sustainable ESG Equity HANzero™ UCITS ETF (ticker: SESG) as an active ETF to Europe.  

Saturna Capital believes that companies proactively managing business risks relating to environmental, social, and governance (ESG) issues make better contributions to the global economy and are more resilient.  Saturna has a proprietary ESG scoring model which uses a combination of negative and positive screening, along with financial analysis and an emphasis on low debt, to outperform peers on a variety of ESG factors. We believe that companies proactively managing business risks related to ESG issues are more resilient and make better contributions to portfolios designed for patient investors.”

Hector McNeil, Co-CEO of HANetf, said:“Active ETF assets are currently small given the size of the overall industry, but growth is strong. ETFGI recently reported that assets invested across active EFTs and ETPs had reached a record $329 by the end of Q1 this year2.

The well-recognised advantages of ETFs – intra-day trading, shortability, lendability, having an ETF portfolio held in one venue, portability of positions between trading venues, low entry costs and diversification – are becoming more prevalent. This gives investors the option to gain exposure to the same active investment strategies they already own via an ETF wrapper.  It’s time to bring these benefits to the active management space, creating more choice and more opportunity for both institutional and retail investors.”

HANzero™: Carbon offset projects

Through the HANzero™ programme, investors of this fund will be directly neutralising the carbon emissions of their investments through projects such as Topaiyo Forest Conservation in Papua New Guinea and the Musi River Hydro Plant in Sumatra, Indonesia, each of which contributes towards a range of the UN’s Sustainable Development Goals:

Topaiyo Forest Conservation

Working with the indigenous landowners in New Ireland, this project protects vital rainforest from deforestation. It recovers the land‘s rich biodiversity and revitalises its natural carbon stocks, in turn combating global climate change and enhancing the social and economic development of one of the poorest and most isolated areas of Papua New Guinea.  https://a.southpole.com/public/media/303258/3258.pdf

Musi River Hydro Plant

The project on the island of Sumatra, Indonesia, addresses issues in rural Sumatra such as poor electricity access and the lack of quality employment opportunities – as well as fostering sustainable economic development.
We’ve selected these projects, in part, due to their respective links to the reduction (or avoidance) of carbon.

1 https://www.morningstar.com/funds/xnas/seefx/quote
2 https://etfgi.com/news/press-releases/2021/04/etfgi-reports-assets-invested-active-etfs-and-etps-reached-record-329

Media Contacts:

Europe: Phil Anderson, PerceptionA |phil@perceptiona.com, +44 (0)7767 491 519
Italy: Elena Soffientini, Mymediarelation | soffientini@mymediarelation.it | +39 375 670 62 07
Germany: Caroline Chojnowski, Public Imaging | Caroline.Chojnowski@publicimaging.de | +49 (0)40-401 999 – 23

Important Information:

Communications issued in the European Economic Area (“EEA”)

The content in this document is issued by HANetf Management Limited (“HML”) acting in its capacity as management company of HANetf ICAV. HML is authorised and regulated by the Central Bank of Ireland. HML is registered in Ireland with registration number 621172.

Communications issued in the UK

The content in this document is issued by HANetf Limited (“HANetf”), an appointed representative of Mirabella Advisers LLP, which is authorised and regulated by the Financial Conduct Authority (FCA FRN 606792). HANetf is registered in England and Wales with registration number 10697042.

This communication has been prepared for professional investors, but the Exchange Traded Funds (“ETFs”) set out in this communication may be available in some jurisdictions to any investors. Please check with your broker or intermediary that the relevant ETF is available in your jurisdiction and suitable for your investment profile.

Past performance is not a reliable indicator of future performance. The price of the ETFs may vary and they do not offer a fixed income. 

This document may contain forward looking statements including statements regarding our belief or current expectations with regards to the performance of certain assets classes. Forward looking statements are subject to certain risks, uncertainties and assumptions. There can be no assurance that such statements will be accurate and actual results could differ materially from those anticipated in such statements. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. 

The content of this document does not constitute an investment advice nor an offer for sale nor a solicitation of an offer to buy any product or make any investment. An investment in an exchange traded product is dependent on the performance of the underlying asset class, less costs, but it is not expected to track that performance exactly. The ETFs involve numerous risks including among others, general market risks relating to underlying adverse price movements in an Index or underlying asset class and currency, liquidity, operational, legal and regulatory risks. 

The information contained on this document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering of securities in the United States or any province or territory thereof, where HANetf ICAV or their ETFs are authorised or registered for distribution and where no prospectus of HANetf ICAV has been filed with any securities commission or regulatory authority. No document or information on this document should be taken, transmitted or distributed (directly or indirectly) into the United States. HANetf ICAV, nor any securities issued by it, have been or will be registered under the United States Securities Act of 1933 or the Investment Company Act of 1940 or qualified under any applicable state securities statutes. 

HANetf ICAV is an open-ended Irish collective asset management vehicle issuing under the terms in the Prospectus and relevant Supplement approved by the Central Bank of Ireland (“CBI”) (“Prospectus”) is the issuer of the ETFs. Investors should read the current version of the Prospectus before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in the ETFs. Any decision to invest should be based on the information contained in the Prospectus.

The Prospectus can all be downloaded from www.hanetf.com.

The decision and amount to invest in any ETF should take into consideration your specific circumstances after seeking independent investment, tax and legal advice. 

Published on July 9, 2021

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