DWS is to apply environmental, social and governance (ESG) criteria across its money market funds managed in Europe, Middle East, and Africa.
A euro institutional fund and a US dollar institutional fund have already integrated ESG criteria, while and additional euro fund will do at a later date.
The firm said ESG integration in the money market funds was at an early stage but client demand already existed.
The German fund manager’s ESG standards include sector exclusions, best-in-class rankings, and screening – but according to the firm, no portfolio allocation changes were necessary due to an “already high” standard of ESG.
Harm Carstens, DWS’ co-head short duration portfolio management across the region, said: “These adjustments mean that non-financial aspects relating to ESG will play a stronger role in the fundamental analysis and portfolio allocation by investors, alongside the traditional financial considerations.”
The Deutsche Institutional Money plus fund has become the DWS Institutional ESG Euro Money Market Fund.
Deutsche Institutional USD Money plus is rebranded as DWS Institutional ESG USD Money Market Fund.
And the DWS Rendite Optima Four Seasons – which will adopt ESG next spring and add the term to its new name – is for now called the DWS Euro Money Market fund.
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