IndexIQ has launched the IQ MacKay ESG Core Plus Bond ETF (ESGB), which focuses on investment in securities within the core bond universe that satisfy environmental, social, and governance (ESG) criteria developed by MacKay Shields (MacKay), a fellow New York Life Investments boutique and a global asset manager focused on fixed income and equity investing.
ESGB is an actively managed strategy that seeks total return across a broad portfolio of fixed income securities, while incorporating MacKay’s ESG analysis framework. Through selection and portfolio construction, the portfolio prioritises issuers that demonstrate strong performance relative to peers across certain ESG metrics.
MacKay’s Senior Portfolio Managers in Global Fixed Income Stephen Cianci, Neil Moriarty, Alexandra Wilson-Elizondo and Joseph Cantwell serve as Co-Portfolio Managers of ESGB. Collectively, the Global Fixed Income team has more than USD40 billion in assets under management, as of May 31, 2021, and a long-standing track record managing fixed income strategies across the globe. With proprietary research at the core of MacKay’s approach to active management, the team utilies an investment process that combines fundamental bottom-up research and top-down macroeconomic analysis with robust ESG elements.
Janelle Woodward, President of MacKay Shields, says: “As adoption and demand for ESG investment strategies grow in the fixed income marketplace, we saw a valuable opportunity to reflect our best thinking around ESG inclusion with ESGB, aligning the breadth of our internal research with our total return investment approach. Through the alignment of ESG values with our stakeholders, in our view ESGB can serve as a preferred solution for potential income generation and capital appreciation for both retail and institutional investors.”
Sal Bruno, CIO of IndexIQ, says: “With the launch of ESGB, we’re excited to expand our existing ESG ETF lineup by building upon our partnership with MacKay Shields. We believe investors will recognize the potential benefits of working with a proven portfolio management team and investing in a fund that seeks to provide them broad fixed income exposure in the core bond category with an ESG lens that many investors value in their portfolios.”