Aviva Investors launches climate transition fund
Aviva Investors has announced the launch of its Climate Transition Global Equity Fund in Australia, aimed at supporting the transition to a low carbon economy.
The fund, which would be managed by Jaime Ramos Martin and climate change specialist Rick Stathers, would aim to outperform the MSCI All Countries World Index by 2% per annum on a rolling three-year basis by taking a long-term, high conviction investment approach.
The new fund would target global companies that derived material revenues from goods and services addressing climate change mitigation and adaptation, as well as invested in those companies aligning their business models for a warmer, low-carbon world, the firm said.
At the same time, the fund would avoid stocks exposed to coal, unconventional fossil fuels, Arctic oil and gas production or thermal coal electricity generation, and would also limit exposure to those producing oil and gas or gas-fired power generation.
“The market failure to price in the consequences of climate change presents investors with risks and opportunities,” Jaime Ramos Martin, portfolio manager on the Aviva Investors Climate Transition Global Equity fund, said.
“Drawing up expertise from both our climate specialists and investment teams, we can identify not only companies that provide mitigation and adaption solutions but also companies that are building future climate change risk into their business model. This holistic approach allows us to build high conviction portfolios for clients that aim to have a positive impact on climate.
“The launch of this Fund continues our drive to deliver superior investment performance and sustainable outcomes for clients through positive climate risk management.”
AUTHOR
Oksana Patron
Recommended for you
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
Former Pendal head of multi-asset Michael Blayney has been appointed as a member of the investment committee at specialist managed accounts provider Evidentia Group.
Australian Ethical has seen its funds under management surpass $13 billion in the latest quarter, thanks to retail and wholesale net flows of $173 million but a transition project by Mercer affected superannuation flows.
A salary guide has unpacked the salaries earned in various asset classes, with managing directors in one space earning north of $500,000.
