Guinness Global Investors will manage its first European domiciled active ETF, copying the strategy of the Guinness Sustainable Energy fund run by Will Riley and Jonathan Waghorn.
Guinness created the ETF in partnership with HANetf, to be distributed alongside its other UCITS funds. The strategy will invest in companies focused on storage, efficiency, production, and consumption of sustainable energy sources and their storage and efficiency. There are currently 33 holdings, and 90% of the fund is typically invested in companies with a market cap of over $500m.
The Guinness Sustainable Energy fund, which the ETF will mirror, has been managed by Riley and Waghorn since 2019. Since the duo took on the fund, it has returned 128.2% compared to a sector average of 78.6%.
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Edward Guinness, CEO of Guinness Global Investors, said: “We are excited to partner with HANetf to take on management of our first European ETF. HANetf has a proven expertise in ETF operation. Guinness was the first company in the US to convert a mutual fund to an ETF. Active ETFs are now finding their place in investor portfolios outside the US, and we are committed to meeting investors’ needs with high quality investment products.”
The ETF will be listed on seven exchanges and registered across 14 countries. It has a total expense ratio of 0.65%.
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Hector McNeil, co-founder and co-CEO of HANetf, said: “We are delighted to be launching an ETF with Guinness Global Investors, especially one providing exposure to such a crucial investment theme as renewable energy. Guinness Global Investors has a strong active management track record in the energy space, and we are confident that European ETF investors will be pleased to now be able access this through an ETF wrapper.
“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. 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’s 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.”
