Bridgewater’s famed All Weather strategy will be a core plank of the fund.

Bridgewater Associates, the world’s largest hedge fund, which is led by billionaire Ray Dalio, will launch in Europe a sustainability/ESG fund using a UCITS structure. For this purpose, it is partnering with Lyxor Asset Management, a subsidiary of French bank Societe Generale (PAR: GLE). (CIO)

Lyxor, which has $15 billion in ESG assets under management, previously partnered with Bridgewater in 2019 for the launch of a new alternative UCITS fund, the Lyxor/Bridgewater Core Global Macro Fund.

A new fund designed for both financial and sustainability goals

Utilizing Bridgewater’s All-Weather multi-asset strategy, and trading assets aligned to the UN SDGs, the new vehicle will help investors reach both their financial and ESG goals.

The United Nations’ 17 sustainable development goals include clean water and sanitation; climate action; affordable and clean energy; and gender equality.

While Lyxor will manage the UCITS strategy, Bridgewater will act as sub-advisor for implementing the All-Weather asset allocation framework.

“The journey of scalable sustainable investing is a strategic priority for Bridgewater and our clients,” said Brian Kreiter, Bridgewater’s chief operating officer (COO), in a statement. “Using the same research process that we have developed over the last 40 years, we have built a systematic process to engineer both the sustainability and financial characteristics of portfolios.”

“Our clients’ appetite for sustainable investing has grown significantly in recent years, with investors setting goals that combine financial and sustainability outcomes,” said Nathanael Benzaken, Lyxor’s chief client officer to HedgeWeek. “Lyxor’s culture of innovation and recognized ability to design transparent investment frameworks has helped us achieve client goals in this area.”

ESG ETFs hit a new record in November

The latest ETF data from Lyxor shows that ESG is a key priority for European investors.

According to Vincent Denoiseux, Head of ETF Research and Solutions at Lyxor ETF, flows into ESG ETFs hit a new record of € 7.5 billion more than double the one-year average in the market segment.

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