Guinness partners with HANetf to manage sustainable energy ETF
26 JUL, 2024
By Jose Luis Palmer from RankiaPro Europe
Guinness Global Investors and HANetf have announced a partnership to manage Guinness' first European domiciled active ETF, aimed at mirroring the investment philosophy of the company’s flagship Sustainable Energy fund.
Launching the Guinness Sustainable Energy UCITS ETF
The new ETF, listed on seven exchanges, will focus on companies involved in the generation, storage, efficiency, and consumption of sustainable energy sources. Managed by Will Riley and Jonathan Waghorn, the ETF seeks to benefit from significant tailwinds in the sustainable energy sector over the next 20 years. Factors such as decreasing renewable energy costs and the competitive pressure on traditional energy sources are expected to drive growth. Additionally, the ETF will capitalize on government and corporate efforts to achieve carbon targets and improve public perception through sustainable energy initiatives.
The Guinness Sustainable Energy UCITS ETF will maintain a predominantly liquid portfolio, with 90% of the fund invested in companies with a market capitalization greater than $500 million. The fund will consist of 33 equally weighted positions and will feature a total expense ratio (TER) of 0.65%.
Strategic Partnership and Market Position
Edward Guinness, CEO of Guinness Global Investors, expressed enthusiasm about the partnership and highlighted Guinness' pioneering role in the US market by being the first to convert a mutual fund to an ETF and emphasized the growing importance of active ETFs in investor portfolios outside the US.
We are excited to partner with HANetf to take on management of our first European ETF. HANetf has a proven expertise in ETF operation.
Edward Guinness, CEO of Guinness Global Investors
We are delighted to be launching an ETF with Guinness, especially one providing exposure to such a crucial investment theme as renewable energy.
We are seeing more and more asset managers within Europe looking to enter the active ETF space and a growing pipeline to add to the HANetf platform.
Hector McNeil, co-founder and co-CEO of HANetf
Future Outlook and Market Dynamics
The ETF will be registered in fourteen European countries, reflecting a strategic move to meet the growing demand for sustainable investment options. McNeil underscored the trend towards active ETF strategies in Europe, comparing the current scenario to the early stages of the US market where active ETFs now dominate new listings.
I always say that active asset managers in Europe without an ETF strategy are like dinosaurs looking up at the sky and seeing a small black dot far away and saying that is nothing to worry about. This is clearly changing, and Europe is following the US market where the majority of new ETF listings are active ETFs.
Hector McNeil, co-founder and co-CEO of HANetf
This partnership between Guinness and HANetf marks a significant step in expanding access to sustainable energy investments, aligning with broader industry trends and investor preferences for environmentally conscious investment products.
