Finance and Sustainability: Supervielle launches Environmental, Social, and Governance (ESG) Mutual Fund
Grupo Supervielle announces that its subsidiary Supervielle Asset Management (SAM) has launched an Environmental, Social, and Governance (ESG) Mutual Fund in Argentina with the aim of facilitating financing for companies with sustainable development projects.
The ESG mutual fund market in Argentina is incipient and has high growth potential. This type of investment involves considering environmental factors, such as a company’s impact on climate change or natural resource management; social factors, such as labor practices, human rights, and engagement with local communities; and governance factors, such as transparency, corporate ethics, and governance structure.
How should the assets of the ESG fund be invested?
The fund must comply with regulations defined by the Argentine National Securities Commission (CNV), where at least 75% of the fund should be invested in negotiable securities:
- From segments and/or trading panels focused on Social, Green, and/or Sustainable sectors in authorized markets.
- From issuers listed in authorized market panels that highlight the application of good Corporate Governance, Social, and/or Environmental practices, or that are part of sustainability indexes that consider ESG variables in their analysis.
- Having undergone external review, following the «Guidelines for the Issuance of Social, Green, and Sustainable Negotiable Securities in Argentina.»
- Debt securities and/or participation certificates issued by Solidarity Financial Trusts established under this regime.
With these funds, aimed at investors with a moderate risk profile, Supervielle has captured AR$1.3M since its launch. The Company continues to promote more sustainable business practices and foster the transition to a greener and socially responsible economy.
«In recent years, investments in funds of this category have grown significantly worldwide, including in major Latin American countries. With the goal of becoming the country’s leading sustainable fund, we, at Supervielle Asset Management, are launching our first ESG fund, already the second largest in assets under management,» says Hernán Oliver, Head of Treasury & Global Markets at Banco Supervielle.
Verónica de los Heros, Sustainability Manager at Supervielle, adds: «The launch of the ESG Fund represents a new step in integrating sustainability factors into SAM’s investment decisions. In this way, we aim to promote responsible investments among our clients, contributing to the promotion of sustainable practices and the solution of social and environmental issues.»
The fund is geared towards moderate-risk investors, and interested clients can invest starting from AR$100 through Online Banking.
