Scottish Widows has launched four new funds focused on environmental and climate change issues.
A new Global Environmental Solutions Fund will focus on directing pension investment into companies that provide solutions to environmental problems such as global greenhouse gas emissions, food security, pollution and biodiversity loss.
Scottish Widows has also launched three regional equities funds which track decarbonising benchmarks. These funds, managed for Scottish Widows by BlackRock and Abrdn, look to invest in companies at the forefront of the transition to a low carbon economy.
Scottish Widows says the new funds are part of a “suite of new strategies” applying to £1.4 billion worth of assets. The funds will target companies involved in advancing alternative energy generation and supply, clean mobility, transport and infrastructure sustainability, forestry, sustainable agriculture, biodiversity preservation and pollution prevention.
Developed with fund manager Schroders, the Global Environmental Solutions Fund invests in companies that derive at least 50% of their revenues from goods and services that support sustainable alternatives in transportation, electricity and heat production, water use, agriculture, or industrial manufacturing.
Maria Nazarova-Doyle, head of responsible investments at Scottish Widows, said: “We recently called for the industry and government to tackle environmental crisis and nature degradation together through joined up, focussed action. With the launch of our new fund, we’re taking steps ourselves towards driving major investment into better outcomes for the environment as well as our customers.
“We have an urgent imperative to support the companies attempting to drive the change our planet desperately needs, while protecting the savings and livelihoods of our members in the long run. More innovative solutions are on the horizon, but we must work together to ensure they become a reality.”
• Fidelity International has launched the Fidelity Global Government Bond Climate Aware UCITS ETF to expand its climate-focused ETF investment range. The fund is the third in a series of climate-focused ETF launches, joining the Fidelity Sustainable Global Corporate Bond Paris-Aligned Multifactor UCITS ETF and the Fidelity Sustainable Global High Yield Bond Paris-Aligned Multifactor UCITS ETF.
• Canada Life recently announced the launch of its Diversified Risk Managed (DRM) fund range as part of the refresh of the Managed Fund suite of 0-35%, 20-60% and 40-85% funds. The new fund range allows investors and advisers to choose from four different risk profiles, each with specific volatility parameters, that best fits their long-term investment objectives.
