Boston-based asset manager Changebridge Capital announced today the launch of two new actively managed ESG equity ETFs. The new products include the Changebridge Capital Long/Short Equity ETF (CBLS) features a concentrated portfolio of long and short positions, and the Changebridge Capital Sustainable Equity ETF (CBSE), which utilizes a long-only approach.
According to Changebridge, both new ETFs feature concentrated portfolios. CBLS has a small and mid-cap focus and integrates an ESG mindset into the investment process. CBSE utilizes an all-cap focus, selecting securities that are misunderstood or overlooked by the market in order to generate risk-adjusted alpha. The firm stated that CBSE is designed with a sustainability mandate, and as such assesses the ESG attributes of all securities considered for inclusion in the portfolio.
Ross Klein, Chief Investment Officer at Changebridge Capital, said:
“We’re thrilled to be launching our first funds, CBLS and CBSE. By enabling investor access to actively managed funds that aim for a true active share, we feel we’re really leveling the playing field for investors who previously had difficulty accessing strategies like these, especially in the tax efficient, transparent ETF wrapper.
“On top of the quantitative and fundamental analysis, both CBLS and CBSE take sustainability characteristics into account when selecting their respective portfolios. This is a huge area of interest for many investors who wish to invest in accordance with their values.
“Moreover, the investing public has learned that ESG investing does not necessarily mean sacrificing returns.”
Changebridge specializes in active management powered by quantitative and fundamental analysis, an approach which will be applied to the new ESG ETFs. Vincent Lorusso, Portfolio Manager at Changebridge Capital, said:
“We call it a ‘quantamental’ approach. Our quant system is designed to actively identify inefficiencies, but that’s where fundamental analysis with a human touch takes over, to really drill down into the opportunities.”