Lyxor Asset Management announces that it has raised over €1 Billion in assets inits Climate ETFrange, only one year after itslaunch, in a sign that investors are taking decisive action to align their portfolios with their carbon neutrality goals.
Arnaud Llinas, Head of Lyxor ETF and Indexing
The eight Lyxor Climate ETFs, whichreplicatetheS&P Paris-Aligned Climate(PAB) and MSCI Climate Change(CTB) indicesand are designed to comply with European regulations, account for a share of 30%of the ETF market segment tracking PAB and CTB indices1.
In March 2020, Lyxor became the first European ETF provider to launch a full ecosystem of ETFs that takethe objectives of the Paris Agreement of limitingthe rise in temperatures to 1.5°C,“with no or limited overshoot” above pre-industrial levels, into account.
In a context where flows into ESG ETFs are breaking all records in Europe, Climate ETFs are making their way into the portfolio allocations of institutional investors committed to decarbonising their portfolios and contributing to reduction of emissions. Labelled climate indices provide a transparent and cost-effective way to leverage a multitude of climate data. The high value-added PAB and CTB indices tracked by the Lyxor ETFs allow investors to reduce the immediate carbon intensity of theirportfoliosand to follow an absolute decarbonisation path of 7% year-on-year.
Arnaud Llinas, Head of Lyxor ETF and Indexing, commented: “Over the past year, institutional investors gradually became aware that Climate ETFs can be an effective tool in the fight against climate change, as they can shift capital towards low-carbon investments at scale, within a scientific rules-based and transparent framework. We are convinced that Climate ETFs, through their accessibility and low fees, will also help democratizeclimate investment for retail investorsand,as a result,will form a fundamental component of the wider ESG ETF market.”
Fighting climate change is central to Lyxor’sconvictions. Lyxor positions itself asthe ETF provider of reference for climate indices, having launched the world’s first Green Bond ETF in 2017, the largest in its category with €560 million of assets under management2. Most of the capital raised by the ETF’s underlying Green Bonds finances projects aimed at fighting climate change. Earlierthis year, Lyxor published temperature measurements for 150 of its ETFs, enabling investors to assess the impact of their portfolios on global warming and to reallocate their capital towards a low-carbon economy.
1 Source: Lyxor International Asset Management, Bloomberg, as of 02/06/2021.
2 Source: Lyxor International Asset Management, Bloomberg, as of02/06/2021.