Virgin Money this weekend launched a new Climate Change Fund designed to only invest in companies that boast a lighter than average environmental footprints.
The company said at least three quarters of the fund will be invested in a portfolio of shares from European companies that outperform the industry average across a number of environmental metrics. The remainder of the fund will be allocated directly to "solution adapters", companies that Virgin identifies as developing solutions to climate change-related challenges.
Asset management firm GLG Partners will act as fund advisers and environmental research organisation Trucost will provide the environmental data.
"The climate change issue is too often seen as one where consumers have to pay a price," said Virgin Money CEO Jayne-Anne Gadhia, adding that the fund is designed to provide investors with a return while investing in companies that are promoting more environmentally-sustainable businesses practices.
Pierre Lagrange, co-founder of GLG said that tightening environmental regulations, increased energy costs and new incentives for green firms meant that environmentally-conscious firms tended to boast strong financial performance.
"This creates opportunities for managers such as GLG to invest in high performing greener, companies and produce strong returns for investors," he added.
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