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Impact Shares and UNCDF Launch New Global Climate Select ETF (NYSE Arca: NTZO) based on customized MSCI index
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Impact Shares has launched the MSCI Global Climate Select ETF (NYSE: NTZO) to support UN climate goals alongside the United Nations Capital Development Fund. This ETF is based on the MSCI ACWI Climate Pathway Select Index and excludes companies profiting from fossil fuels and harmful industries. A notable feature is the donation of management fees to the UNCDF to aid sustainable development in the world's Least Developed Countries. The ETF began trading on November 3, coinciding with the COP26 conference.
Positive
Launch of NTZO ETF aligns with UN climate goals, potentially attracting socially conscious investors.
Management fees are donated to UNCDF, enhancing investor appeal and supporting sustainable development.
Negative
Stocks in this ETF may underperform compared to non-ESG focused funds.
Investing in NTZO carries risks associated with capital loss and market volatility.
Strict climate ETF launched by Impact Shares and members of the Global Investors for Sustainable Development to support UN climate goals
NEW YORK--(BUSINESS WIRE)--
Impact Shares, the nonprofit ETF sponsor backed by The Rockefeller Foundation, is pleased to announce the launch of the Impact Shares MSCI Global Climate Select ETF (NYSE Arca: NTZO) in collaboration with the United Nations Capital Development Fund (UNCDF), the UN agency that makes public and private finance work for the poor in the world’s 46 Least Developed Countries (LDCs). NTZO is based on an index licensed by MSCI (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community.
The new ETF, based on the MSCI ACWI Climate Pathway Select Index, was co-created by Impact Shares and a working group of the Global Investors for Sustainable Development (GISD) Alliance. In 2019, UN Secretary General António Guterres established the GISD, a group of 30 of the world’s top business leaders, to arrive at solutions that scale up private finance and investment necessary to achieve the UN Sustainable Development Goals (SDGs).
“The GISD Alliance was convened to help move money behind the SDGs,” said Investec CEO Fani Titi, a GISD member. “With this climate ETF aimed at tackling SDG 13, we have created a real opportunity for investors to finance greater good. It is exciting to see our work with the United Nations and other partners to develop standards and tools to mobilize investment in sustainable development paying off in this investment product.”
The NTZO ETF includes UN values in its methodology: companies in the index must abide by the UN Global Compact, and entities that profit from weapons, guns, alcohol, tobacco, or palm oil are excluded. Recognizing the urgency of moving to a Net Zero economy during the UN Conference of Parties (COP) meeting and beyond, the index also excludes companies that own or profit from any form of fossil fuel.
“The need to address climate change impacts has never been clearer, especially for the world’s poorest and most vulnerable countries,” said Preeti Sinha, Executive Secretary of UNCDF. “We at UNCDF are very proud to support the GISD by issuing our second ETF with Impact Shares [after the 2018 launch of SDGA, which includes companies that create positive economic benefits in the Least Developed Countries (LDCs)]. NTZO demonstrates UNCDF’s ability to create innovative financial products that appeal to investors and continue to raise impact standards. And the fee donation will help the UN build climate resilience in the world’s LDCs.”
Stuart Doole, Managing Director, Research at MSCI, comments: “We are pleased to work with Impact Shares as the index provider for this launch. The MSCI ACWI Climate Pathway Select Index was constructed through an approach that targets companies with climate transition opportunities, minimizes climate transition risks, reduces carbon emitters using Scope 1, 2 and 3 emissions criteria, and includes companies with carbon reduction targets following an annualized 7% year-on-year decarbonization trajectory. The index also targets an improved ESG profile as compared to its parent market capitalization weighted index, the MSCI ACWI Index.”
Impact Shares, a nonprofit fund manager, will donate the net management fee on NTZO to UNCDF to build climate resilience and adaptation in the LDCs. This fee donation gives the investing public an innovative new way to support the work of the United Nations.
"Extreme weather events and intensifying climate volatility are a stark reminder of the urgency of accelerating the carbon transition," said Ethan Powell, CEO of Impact Shares. "Broad collaboration among key organizations such as the UNCDF and GISD are crucial in moving investors to decarbonize their portfolios and support the transition to a more sustainable economy."
The launch of NTZO was announced November 3 in Glasgow at the UN Climate Change Conference (COP26) and began trading on the New York Stock Exchange the same day.
About Impact Shares
Impact Shares is a nonprofit fund sponsor and investment manager that is creating a new and innovative platform for clients seeking maximum social impact with market returns. Impact Shares' goal is to build a capital markets bridge between leading nonprofits, investors and corporate America to direct capital and social engagement on societal priorities. Impact Shares is a tax-exempt non-profit organization under Section 501(c)(3) of the Internal Revenue Code. For more information about Impact Shares, visit impactetfs.org.
About UNCDF
The UN Capital Development Fund makes public and private finance work for the poor in the world’s 46 least developed countries (LDCs). UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development. UNCDF’s financing models work through three channels: (1) inclusive digital economies, which connects individuals, households, and small businesses with financial eco-systems that catalyze participation in the local economy, and provide tools to climb out of poverty and manage financial lives; (2) local development finance, which capacitates localities through fiscal decentralization, innovative municipal finance, and structured project finance to drive local economic expansion and sustainable development; and (3) investment finance, which provides catalytic financial structuring, de-risking, and capital deployment to drive SDG impact and domestic resource mobilization. Visit us at www.uncdf.org and subscribe for updates at bit.ly/2wwDiqs.
Net Profits is the excess, if any, of Impact Shares’ adviser’s fees after the deduction of operating expense and a reserve for working capital. There is no guarantee a net profit, and therefore a donation, will occur.
Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed herein are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Impact Shares disclaims any obligation to update or revise any statements or views expressed herein.
Carefully consider the Funds’ investment objective, risk factors, and expenses before investing. This and additional information can be found in the Impact Shares statutory and summary prospectus, which may be obtained by calling 855-267-3837, or by visiting ImpactETFs.org. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. NTZO may underperform other similar funds that do not consider ESG guidelines when making investment decisions. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Narrowly focused investments and investments in smaller companies typically exhibit higher volatility. The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund’s gains or losses. The Fund is non-diversified.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Impact Shares ETFs are distributed by SEI Investments Distribution Co., with is not affiliated with Impact Shares Corp., the Investment Adviser for the Funds.
UNCDF
Esther Pan Sloane, Head, Partnerships, Policy and Communications (212) 906-6522
esther.pan.sloane@uncdf.org
Source: Impact Shares
FAQ
What is the MSCI Global Climate Select ETF (NTZO)?
The MSCI Global Climate Select ETF (NTZO) is a new investment fund aimed at supporting UN climate goals, launched by Impact Shares in collaboration with UNCDF.
When did NTZO start trading on the stock exchange?
NTZO began trading on the New York Stock Exchange on November 3, coinciding with the COP26 conference.
How does NTZO support sustainable development?
The ETF donates its management fees to UNCDF, which helps build climate resilience in the world's Least Developed Countries.
What companies are excluded from the NTZO ETF?
The NTZO ETF excludes companies that profit from fossil fuels, weapons, tobacco, alcohol, and palm oil.
What are the risks associated with investing in NTZO?
Investing in NTZO entails risks such as potential capital loss, market volatility, and underperformance compared to traditional funds.
