Brazil brokerage XP puts $19 million into ESG-focused funds
SAO PAULO (Reuters) - Brazilian brokerage XP Inc (NASDAQ: XP) on Friday said it was creating two investment funds totaling 100 million reais ($18.64 million)focused on companies with superior environmental, societal and corporate governance (ESG) practices.
The move is part of a worldwide trend to find investments that are socially responsible as well as profitable.
"We think that companies in the future need to be aligned with ESG strategies," said Gustavo Pires, who leads XP's Asset Management Services.
One fund, called Trend ESG Global, will be exposed to ETFs abroad that in turn invest in companies like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT) and Procter & Gamble (NYSE: PG).
Another fund, to be launched in July, will be called Selection ESG and will invest seed money into a fund of funds that will be focused on Brazilian companies that have strong ESG practices.
(Reporting by Paula Arend Laier; editing by Jonathan Oatis)