VanEck today announced the launch of its newest mutual fund, the VanEck Environmental Sustainability Fund (“the Fund”, tickers: ENVAX, ENVIX, ENVYX). The Fund is designed to provide investors with exposure to global companies operating in a variety of environmental sustainability sectors such as renewable energy, smart resource management, agriculture technology, recycling, water and advanced materials. The Fund aims to align investor interests with aspirational objectives set forth by a number of the United Nations Sustainable Development Goals.
The Fund’s approach is guided by the investment team’s philosophy that long-term environmental initiatives will be driven by companies with sustainable business models. This concept of “dual sustainability”, or sustainable results through sustainable business models, is at the core of the process to identify equity opportunities using a combination of qualitative and quantitative measures.
Integrated into the investment process are certain key metrics that the team believes should be routinely measured, quantified and reported on by companies in order to demonstrate and benchmark their current environmental aspirations and obligations. To that end, VanEck has developed a research and engagement framework focused on “CLAW” metrics (which measure results and progress around sustainability efforts related specifically to Climate, Land, Air and Water).
“Investors should be taking a holistic view when it comes to environmental sustainability,” said Shawn Reynolds, Portfolio Manager for the Fund. “By taking a comprehensive approach across various sectors with this fund, we’re able to identify a broad range of companies that are purposely focused on critical land and water factors, as well as greenhouse gas emissions. Our goal is to provide investors with a means through which they can invest in and support publicly traded companies that are measurably addressing climate change by developing innovative solutions to environmental issues for the long term.”
In addition to CLAW metrics, candidates for portfolio inclusion must also demonstrate competitive financial positioning with a managerial commitment to governance, engagement, and reporting. The VanEck team will also take into account key policy drivers that may impact sectors and companies, including government stimulus and subsidies, regulatory developments and geopolitical considerations.
VanEck, a 2017 signatory to the Principles for Responsible Investment, has decades of experience in global resource-focused investing, and Mr. Reynolds, who also serves as Portfolio Manager for the VanEck Global Resources Fund (GHAAX), has been with the firm since 2005.
VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.
Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of June 30, 2021, VanEck managed approximately $81.3 billion in assets, including mutual funds, ETFs and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.
Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.
Issuers engaged in environmentally beneficial business lines may be difficult to identify and investments in them maybe volatile. Environmentally-focused investing is qualitative and subjective by nature, and there is no guarantee that the factors utilized by the Adviser or any judgment exercised by the Adviser will reflect the opinions of any particular investor. Information regarding responsible practices is obtained through voluntary or third-party reporting, which may not be accurate or complete, and the Adviser is dependent on such information to evaluate a company’s commitment to, or implementation of, responsible practices.
You can lose money by investing in the Fund. Any investment in the Fund should be part of an overall investment program, not a complete program. An investment in the Fund may be subject to risks which include, among others, investing in derivatives, equity securities, emerging market securities. environmental-related securities, foreign currency transactions, foreign securities, investments in other investment companies, management, market, new fund risk, non-diversification, operational, sectors, small and medium capitalization companies, special purpose acquisition companies. Small- and medium-capitalization companies may be subject to elevated risks.
Prior to May 1, 2021, VanEck Global Resources Fund was known as VanEck Global Hard Assets Fund. You can lose money by investing in GHAAX. Any investment in GHAAX should be part of an overall investment program, not a complete program. GHAAX is subject to risks associated with concentrating its investments in Canadian issuers, commodities and commodity-linked derivatives, commodities and commodity-linked derivatives tax, derivatives, direct investments, emerging market securities, foreign currency transactions, foreign securities, global resources sector, other investment companies, management, market, operational, small- and medium-capitalization companies and special purpose acquisition companies. GHAAX’s investments in foreign securities involve risks related to adverse political and economic developments unique to a country or a region, currency fluctuations or controls, and the possibility of arbitrary action by foreign governments, including the takeover of property without adequate compensation or imposition of prohibitive taxation.
An investment in GRNB may be subject to risks which include, among others, green bonds, investing in Asian, Chinese and emerging market issuers, foreign securities, foreign currency, credit, interest rate, floating rate, floating rate LIBOR, high yield securities, supranational bond, government-related bond, restricted securities, securitized/asset-backed securities, financial, utilities, market, operational, call, sampling, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect GRNB.
An investment in SMOG may be subject to risks which include, among others, investing in low carbon energy companies, investing in European issuers, foreign securities, foreign currency, depository receipts, utilities, consumer discretionary, industrials and information technology sectors, small- and medium-capitalization companies, equity securities, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, high portfolio turnover, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect SMOG. Foreign investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange rates which may negatively impact SMOG’s return. Small- and medium-capitalization companies may be subject to elevated risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
Chris Sullivan/Julia Stoll