BNY Mellon Launches ESG Fixed Income Offering: RHCB
BNY Mellon Investment Management launched the BNY Mellon Responsible Horizons Corporate Bond ETF (RHCB).
RHCB, listed on the NYSE on March 22 with a 35 basis points expense ratio, is sub-advised by Insight North America, a subsidiary of Insight Investment, a BNY Mellon investment firm.
“This is an exciting addition to our growing ETF range as investors and advisors are increasingly looking for outcome-oriented strategies in more versatile investment vehicles,” Andy Provencher, head of North American distribution, BNY Mellon Investment Management, said in a statement. “By leveraging Insight’s fixed income and responsible investment experience, we’re able to provide our clients with a sustainable investment solution through an actively-managed ETF vehicle.”
The new active ETF seeks a total return consisting of capital appreciation and income while focusing on corporate debt securities issued by companies that demonstrate attractive investment attributes and business practices, based on Insight’s proprietary ESG rating methodology, Prime, according to a statement from the firm.
The fund is managed by Insight’s $316.3 billion fixed income group comprising Erin Spalsbury and Jonathan Earle. The ETF seeks to emphasize what Insight believes to be the best performers on ESG issues, avoid the worst ones, and carefully consider the approach taken to investments in environmentally sensitive industries, according to the statement.
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RHCB is the sixth actively managed and fourth dedicated sustainable solution in BNY Mellon Investment Management’s ETF range, which offers investors the specialist capabilities of its investment firms delivered through a suite of actively managed and Index ETF solutions.
“This is the first time that Insight has offered U.S. ETF investors access to its ESG expertise. Responsible Investment is central to our philosophy and culture. We believe that our proposition is compelling and should stand out in a market where few products approach responsible investment via fixed income,” Svein Floden, head of intermediary distribution at Insight, said.
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