Bessemer Investment Management, the asset management arm of family office Bessemer Trust, is to launch its first ESG-focused mutual fund.
According to a document filed with the Securities and Exchange Commission, the fund is to be called the Old Westbury All Cap ESG fund.
The fund will be the seventh mutual fund in the firm's Old Westbury line-up.
The current Old Westbury fund range consist of three internally managed and three subadvised mutual funds, which have a total of over $35 billion in assets under management, according to data from the Morningstar website.
The new fund is to have a management fee of 75 basis points and will be managed by Qiang Jiang, Y. Gregory Sivin and Anna E. White.
According to the SEC filing, the managers will use a quantitative tool to rank companies based on an ESG score from 0 to 100 in addition to further quantitative scores for traditional metrics like valuation, profitability and earnings quality. Companies are then weighted by their respective scores
Bessemer Trust is a multi-family office headquartered in New York City with over $100 billion in assets under supervision.
A Bessemer spokeswoman confirmed the contents of the filing but declined to comment further.
The move is part of broader trend from asset managers and gatekeepers to launch and add ESG-focused products as investor interest in these products continues to grow.
According to Morningstar, sustainable-focused funds in the US currently have at total of $95 billion in assets under management and there has been a steady growth of both flows and new launches.
In 2017, 40 sustainable investing funds were launched, consisting of 28 mutual funds and 12 ETFs, compared to 2016 when 36 funds were launched, split between 16 mutual funds and 20 ETFs.
Total flows into sustainable investing funds was $6.4 billion in 2017, a 10% increase from 2016’s $5.8 billion.
Lately, gatekeepers have had their eyes out for ESG funds and separately managed accounts (SMAs) to add to their platforms.
In February, Scott Lavelle, director of investment advisor research at PNC, told Citywire he plans to add two or three more ESG strategies to the firm’s wealth management platform before the end of the year.
This followed a move that saw Lavelle's team add five ESG ETFs from iShares, State Street and Invesco.
Asset managers have also been busy building out their ESG rosters.
In January, Putnam Investments announced plans to convert the $4.5 billion Putnam Multi-Cap Growth fund into the Putnam Sustainable Leaders fund and the $425.6 million Putnam Multi-Cap Value fund into the Putnam Sustainable Futures fund, creating a $4.96 billion ESG proposition.
On top of the newly-revamped funds, Aaron Cooper, chief investment officer of equities at Putnam, said the firm would move to offer ESG SMAs in the near future.