[Asia Economy Reporter Minwoo Lee] Yuanta Securities is launching a wrap account product focused on ESG investments, which are spreading domestically and internationally, covering Environment (E), Social (S), and Governance (G) factors.
On the 5th, Yuanta Securities announced the launch of the 'Hidden Alpha EMP Wrap (ESG type),' a portfolio composed of global ESG-themed Exchange Traded Funds (ETFs). ESG refers to investing in companies that are selected for sustainable growth by considering environmental, social, and governance factors alongside financial elements.
The 'Hidden Alpha EMP Wrap (ESG type)' primarily selects ETFs that have received a BBB or higher rating in the seven ESG grades by Morgan Stanley Capital International (MSCI). The portfolio is managed by focusing on ESG leader ETFs from developed and emerging markets, along with thematic ETFs such as renewable energy, low-carbon industries, and social responsibility. Since it directly invests in US-listed ETFs without hedging against currency fluctuations, it also offers the benefit of holding dollar-denominated assets.
The minimum subscription amount is 10 million KRW. A 1% upfront fee is charged, and 0.4% (1.6% annually) of the average asset balance is charged every three months after subscription. Subscriptions are available at Yuanta Securities branches nationwide, and detailed information can be obtained by contacting the branches or customer center.
Kim Juhyung, head of the wrap management team at Yuanta Securities, said, "'Hidden Alpha EMP Wrap (ESG type)' has the advantage of allowing relatively easy investment in companies with high sustainable growth potential amid global climate change policies, based on the ESG theme, which is currently the most notable global investment factor." He added, "Considering the eco-friendly policies to be promoted by recently elected US President Joe Biden, ESG investments are expected to consistently yield good results."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
