• FAB SDG Fund targets investments that address social and environmental challenges
• Investment strategy concentrates funds towards achieving sustainable outcomes
• Proportion of management fees allocated to non-profit programmes or projects

First Abu Dhabi Bank (FAB) has introduced its first ESG-oriented fund for its Private Banking clients, providing clients with access to sustainable investing.

The FAB Sustainable Development Goals Fund (FAB SDG Fund), managed by FAB Private Bank (Suisse) SA, aims to capture long-term investment opportunities that address the world’s major social and environmental challenges, as defined by the UN Sustainable Development Goals (SDGs). Each underlying investment fund will be assessed for its alignment with the 17 UN SDGs and with FAB’s ESG strategy.

The FAB SDG Fund will concentrate investment flows directly towards sustainable outcomes through 17 exchange traded funds (ETFs), each matching at least one of the SDG goals in terms of investment purpose. A strong environmental, social, and corporate governance (ESG) footprint is embedded across the ETF selection and portfolio construction processes, positioning the fund at the heart of FAB Private Banking’s sustainable investment offering.

Additionally, FAB will also support the UN goals financially by allocating 17 basis points of the fund management fees to a dedicated non-profit programme or project annually.

Michel Longhini, Group Head of Global Private Banking at FAB, said, “The FAB SDG Fund offers clients a practical vehicle for conscious investing that considers environmental, social and governance (ESG) factors. We see a growing number of our clients who want to deploy their wealth in a way that achieves positive impact, particularly in areas linked to their personal environmental or sustainability concerns. By offering a wider choice of values-based investing, we satisfy our clients’ expectations to see their funds working to support positive outcomes for the wider community.”

The launch of the FAB SDG Fund reflects current trends among investors to consider ESG characteristics as having a direct and positive impact on their portfolios, in addition to their standard preferences in terms of risk-return profile. SDG-aligned investing directs capital towards companies that are known as ‘key enablers’ and which provide investment solutions to the world’s 17 biggest challenges to be achieved by 2030.

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The 17 SDGs, with their 169 targets, form the core of the 2030 Agenda of the United Nations, and were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity. SDGs are integrated across a range of challenges, including poverty, hunger, education, economy, health, gender discrimination, and environment. They recognise that action in one area will affect outcomes in others, and that development must balance social, economic, and environmental sustainability.