On Tuesday 25 January 2022, Quintet Private Bank, headquartered in Luxembourg and operating in 50 European cities, launched the world’s first multi-asset, climate-neutral investment fund.
The Essential Portfolio Selection (EPS) Quintet Earth, a UCITS fund, combines equal exposure to green bonds and low-carbon equities, offsetting associated carbon emissions through reforestation activities. Quintet Earth has been launched with some €280 million in assets.
All green bond proceeds are exclusively invested in projects designed to generate positive environmental benefits, while the basket of low-carbon equities is associated with 70% less carbon than conventional equities. The carbon emissions associated with those equities are offset through the annual purchase of carbon credits derived from community reforestation projects – removing carbon from the atmosphere and supporting sustainable development.
Replicating the Bloomberg MSCI Global Green Bond and MSCI World Low Carbon Equity Target indices, with a passive structure, Quintet Earth is managed by DWS, one of the world's leading asset managers, with €880 billion of assets under management.
Quintet Earth is a liquid, multi-currency fund, with daily trading, and has a recommended three to five year holding period. Both institutional and retail share classes are available within a regulated and diversified fund structure. Performance – including green bond use-of-proceeds and community reforestation benefits – is reported monthly.
Carbon offset activities are managed in partnership with myclimate, a non-profit organisation that supports more than 125 climate-protection projects in 37 countries.
“We firmly believe that companies that are better prepared for the impact of climate change on their business –– are better positioned for growth,” said Quintet Group CEO Jakob Stott. “Quintet Earth reflects that core belief, in full alignment with our ambition to be the most trusted fiduciary of family wealth".
James Purcell, Group Head of Sustainable Investment at Quintet, said “Quintet Earth makes a clear statement about our firm and the road we will continue to travel: putting clients first, delivering performance and safeguarding our shared future.”
Quintet is a signatory to the United Nations-supported Principles for Responsible Investment and a member of Climate Action 100+.