Investment strategy concentrates funds towards achieving sustainable outcomes

Proportion of management fees allocated to non-profit programmes or projects

Abu Dhabi: 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.

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.

About First Abu Dhabi Bank (FAB):

Headquartered in Abu Dhabi with a strategic global footprint across 20 markets, FAB is the finance and trade gateway to the Middle East and North Africa region (MENA). With total assets of AED 1.2 trillion (USD 323 billion) as of September-end 2023, FAB is among the top 50 banks globally by market capitalisation and one of the world’s largest banking groups. The bank provides financial expertise to its wholesale and retail client franchise across four business units: Investment Banking, Corporate and Commercial Banking, Consumer Banking, and Global Private Banking. FAB is listed on the Abu Dhabi Securities Exchange (ADX) and rated Aa3/AA-/AA- by Moody’s, S&P and Fitch, respectively, with a stable outlook. On sustainability, FAB holds an MSCI rating of ‘A’, also ranked among the top 10% of banks globally by Refinitiv’s ESG Scores and the best performer in the MENA region.  FAB is a strategic pathway partner of the 28th UN Climate Change Conference of Parties (COP28), which is being held in the UAE from November 30 to December 12, 2023.

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