DWS Group has introduced a new money market fund in the US, which will incorporate environmental, social and governance (ESG) factors.
Dubbed DWS ESG Liquidity Fund, the new vehicle will offer exposure to US government debt obligations, other debt obligations, as well as money market instruments offering little credit risk.
DWS global co-head of products Fiona Bassett said: “The launch of the DWS ESG Liquidity Fund, the first ESG money market fund available for investors in the U.S., offers investors the opportunity to gain best-in-class ESG exposure for their liquidity needs and help invest in a sustainable future.”
The new strategy will take a sustainable investing approach by assessing a company’s involvement in controversial sectors and weapons, and its initiatives in adhering to the United Nations’ Sustainable Development Goals.
The fund will also compare a company’s ESG performance with its peers as well as evaluate its compliance with corporate governance principles.
The vehicle will assess a company’s ESG factors through DWS’ proprietary ESG Engine software.
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By GlobalDataDWS head of liquidity solutions for Americas Sonelius Kendrick-Smith said: “As a global asset manager, it is crucial for DWS to enable our clients to invest in a sustainable future by incorporating ESG factors into their global investment process across asset classes.
“Through the DWS ESG Liquidity Fund, investors will now be able to take advantage of our proprietary ESG Engine software while effectively managing their liquidity.”