New SDG-focused equity fund targeting three per cent outperformance
Investec Asset Management has launched a UK sustainable equity fund targeting three per cent outperformance of the FTSE All-Share per annum, gross of fees, over a full market cycle.
The Investec UK Sustainable Equity fund will be managed by Matt Evans, assisted by the firm's ESG team, using "a rigorous multi-faceted investment process" to identify UK all-cap companies making a positive contribution to the future of society and the environment.
Supported by a research process focusing on risk, reward and sustainability, Evans will build a portfolio of between 40 and 60 holdings that will be contiunally monitored using a proprietary framework of investible sustainable themes to evaluate the companies' internal, external and financial sustainability.
The proprietary framework will be mapped against the UN Sustainable Development Goals (SDGs), covering social and economic development issues including factors such as health, education, social justice, global warming and poverty.
David Aird, managing director, UK Client Group at Investec Asset Management, commented: "Sustainable investment is increasingly top of mind for our clients, the asset management industry at large and broader society.
"This inaugural launch marks a significant milestone for Investec Asset Management's ongoing journey and long-term commitment towards sustainable investing.
"Matt's experience and investment excellence make him well placed to identify those companies with quality characteristics, which are truly making a positive impact, while drawing on the expertise of our dedicated ESG team."
Evans added: "With a thorough understanding of the three pillars of sustainability - internal, external and financial - and an acknowledgement that it is not just the products and services a company delivers that have an impact but its own internal practices, we believe we can create a portfolio that will deliver sustainable investment returns and positively contribute to a better future."
This article first appeared at Investment Week
Green steel 'stimulus for the north’ could revitalise the industry and establish UK as a global leader in green steel technologies, according to IPPR North
All the top green business news from around the world this week, including China coal fleet concerns, ultra-white paint and Brazil's rainforest funding demands
Compromise means informal talks will take place virtually next month as UK battles to ensure Glasgow summit itself takes place in person
A further 1GW of subsidy-free solar could also be added this year as decarbonisation of buildings and energy gathers pace, Solar Energy UK claims