French asset manager Clartan Associés and Ethos Services have launched a ESG equity fund.
The Clartan Ethos ESG Europe Small & Mid Cap fund invests in small and mid cap European stocks with ESG criteria. The portfolio will consist of 25 to 40 stocks with a market cap of up to €20bn that have products and services that have a positive impact on the environment and society. Stocks that generate more than 5% of their turnover from sectors such as weapons, tobacco, gambling, adult entertainment, GMOs, nuclear energy, coal and unconventional fossil fuels will be excluded.
Guillaume Brisset, a partner of Clartan Associés, said: “This joint investment process makes it possible to combine financial and extra-financial criteria and to invest in companies of excellence at several levels.Small and mid-cap companies are at greater risk if they do not master ESG issues but also offer significant growth potential, especially if they have active shareholders alongside them.”