Investors

Schroders Announces Launch of New Sustainable Investment Funds

Published on: 23 February 2022 01:31 PM
by KnowESG

A Brief Summary

The global investment manager Schroders recently announced the launch of new sustainable investment funds, including several new offerings such as sustainable bond funds, digital infrastructure fund, and a UK Unit Trust for its European Sustainable Equity fund.

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The new infrastructure fund is the latest addition to the Schroders Global Transformation Range of thematic strategies. The fund is a trust that makes investments in companies enhancing a sustainable transition to a digital economy.

The fund managers have an active investment approach that helps them identify digital infrastructure companies having a stronghold in physical assets and connectivity, including fibre-optic cables, macro towers, data centres, and small cells.

Fund manager Tom Walker said: “By utilising Schroders’ extensive research and ESG capabilities, we aim to select companies that practice good governance and have demonstrated a commitment to sustainability, which meet the fund’s sustainability criteria. We are confident that, combined with our focus on companies backed by physical assets, we can deliver strong long-term capital growth for our investors.”

The Schroder Sustainable Bond fund will provide investors with returns through sustainable investment across global fixed income markets. The fund will facilitate and control the thematic fixed income investment process.

The investments target those countries making progress towards meeting the United Nations Sustainable Development Goals, ones with net-zero goals, those whose civil and political freedoms support sustainable growth etc. The fund is expected to deliver a total return of 2.5% annually compared to the ICE BofA Sterling three-month government bill index over a maximum five-year cycle.

Paul Grainger, Head of Global Fixed Income and Currency, Schroders, said: “For the Schroder Sustainable Bond Fund, we have developed a rigorous and transparent methodology for analyzing sovereign sustainability. This complements our well-established sustainable credit approach and allows us to build holistic fixed income portfolios, which can provide our clients with long-term and diversified sustainable returns.”

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