NEW YORK--(BUSINESS WIRE)--DWS Group today announced the launch of DWS ESG Liquidity Fund (ESGXX), the first money market fund available in the U.S. to apply ESG (Environmental, Social and Governance) criteria1. The fund will invest in high-quality, short-term, U.S. dollar-denominated money market instruments paying a fixed, variable or floating interest rate while also filtering for various ESG factors using DWS’s proprietary software – the ESG Engine.
“As a global asset manager, it is crucial for DWS to enable our clients to invest in a sustainable future by incorporating ESG factors into their global investment process across asset classes,” said Sonelius Kendrick-Smith, Head of Liquidity Solutions, Americas. “Through the DWS ESG Liquidity Fund, investors will now be able to take advantage of our proprietary ESG Engine software while effectively managing their liquidity.”
“DWS has more than 20 years of experience as a leader and innovator in the field of sustainable, responsible and impact investing,” said Fiona Bassett, Global Co-Head of Products. “The launch of the DWS ESG Liquidity Fund, the first ESG money market fund available for investors in the U.S., offers investors the opportunity to gain best-in-class ESG exposure for their liquidity needs and help invest in a sustainable future.”
The DWS ESG Liquidity Fund buys U.S. government debt obligations, money market instruments and other debt obligations that present minimal credit risks. In addition to considering financial information, the security selection process also evaluates a company based on ESG criteria which considers multiple factors, including:
- Level of involvement in controversial sectors and weapons
- Adherence to corporate governance principles
- ESG performance relative to a peer group of companies
- Efforts to meet the United Nations’ Sustainable Development Goals
The DWS Global Liquidity Management team has more than 40 years of experience in developing a diverse, integrated suite of short-term products and services for institutional and retail investors.
DWS Group GmbH & Co. KGaA (DWS) is one of the world's leading asset managers with EUR 687bn of assets under management (as of 30 Jun 2018). Building on more than 60 years of experience and a reputation for excellence in Germany and across Europe, DWS aims to be recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.
We offer individuals and institutions access to our strong investment capabilities across all major asset classes and solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our strategic investment approach.
DWS wants to innovate and shape the future of investing: with staff from 35 nationalities, speaking more than 75 languages rooted in 22 countries, we are local while being one global team.
ESG investing risk:
Investing primarily in investments that meet ESG criteria carries the risk that the fund may forgo otherwise attractive investment opportunities or increase or decrease its exposure to certain types of companies and, therefore, may underperform funds that do not consider ESG factors.
An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. The use of ESG criteria in a fund’s investment strategy does not guarantee a return or protect against a loss. Money market investments are subject to interest-rate and credit risks. When interest rates rise, prices generally fall. In addition, any unexpected behavior in interest rates could increase the volatility of the fund’s yield and could hurt fund performance. Prepayments could also create capital gains tax liability in some instances. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Although individual securities may outperform the market, the entire market may decline as a result of rising interest rates, regulatory developments or deteriorating economic conditions. Any investments in money market instruments of foreign issuers are subject to some of the risks of foreign investing, such as unfavorable political and legal developments, limited financial information, and regulatory risk and, economic and financial instability. Portfolio management could be wrong in its analysis of industries, companies, economic trends and favor a security that underperforms the market. Please read the prospectus for details.
Nothing contained herein is fiduciary or impartial investment advice that is individualized or directed to any plan, plan participant, or IRA owner regarding the advisability of any investment transaction, including any IRA distribution or rollover.
No bank guarantee | Not FDIC insured | May lose value
© 2018 DWS Group GmbH & Co. KGaA. All rights reserved. 060603_1.0_
1 Source: Crane Data Analytics as of 8/9/18