First Abu Dhabi Bank (FAB) has launched its inaugural ESG-focused fund exclusively for Private Banking clients, granting them access to opportunities in sustainable investing. Managed by FAB Private Bank (Suisse) SA, the FAB Sustainable Development Goals Fund (FAB SDG Fund) is designed to seize long-term investment prospects addressing global social and environmental challenges outlined by the UN Sustainable Development Goals (SDGs). Each underlying investment fund undergoes scrutiny for alignment with the 17 UN SDGs and FAB’s ESG strategy.
Distinguished by its commitment to sustainability, the FAB SDG Fund channels investment flows directly towards impactful outcomes through a portfolio of 17 exchange-traded funds (ETFs), with each ETF corresponding to at least one of the SDG goals in terms of investment purpose. The fund’s robust environmental, social, and corporate governance (ESG) footprint is ingrained in the ETF selection and portfolio construction processes, solidifying its central role in FAB Private Banking’s array of sustainable investment offerings.
Additionally, FAB will also support the UN goals financially by allocating 17 basis points of the fund management fees to a dedicated non-profit programme or project annually.
Michel Longhini, Group Head of Global Private Banking at FAB, said, “The FAB SDG Fund offers clients a practical vehicle for conscious investing that considers environmental, social and governance (ESG) factors. We see a growing number of our clients who want to deploy their wealth in a way that achieves positive impact, particularly in areas linked to their personal environmental or sustainability concerns. By offering a wider choice of values-based investing, we satisfy our clients’ expectations to see their funds working to support positive outcomes for the wider community.”
The launch of the FAB SDG Fund reflects current trends among investors to consider ESG characteristics as having a direct and positive impact on their portfolios, in addition to their standard preferences in terms of risk-return profile. SDG-aligned investing directs capital towards companies that are known as ‘key enablers’ and which provide investment solutions to the world’s 17 biggest challenges to be achieved by 2030.
The 17 SDGs, with their 169 targets, form the core of the 2030 Agenda of the United Nations, and were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity.