Legg Mason has launched two new exchange-traded funds (ETFS) focused on environmental, social and governance, or ESG.
The newly launched investment funds will be sub-advised by ClearBridge Investments, one of the investment advisories owned by Legg Mason.
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Dubbed ClearBridge Large Cap Growth ESG ETF, the fund will invest in large-capitalisation firms with the potential for above average earnings and cash flow growth and a strong commitment to ESG principle, the company said in a statement. It will be bench-marked against the Russell 1000 Growth Index.
The other fund, known as ClearBridge Dividend Strategy ESG ETF, will invest in companies with commitment to ESG principles that can pay good dividends and have the potential to grow dividend payments over time, the statement added. Its performance will be bench-marked against the S&P 500 Index.
ClearBridge Investments CEO Terrence Murphy said: “For over 25 years, our firm has prioritized integrating ESG factors into our investment process and developing a proprietary ESG rating system across our research platform.
“ESG analyses are a core part of our fundamental research process and are done for every company in our coverage universe. Our new active ETFs, ClearBridge Large Cap Growth ESG and ClearBridge Dividend Strategy ESG, will leverage this unique ESG expertise.”
