Global investment manager Schroders announced an expansion of its UK sustainable funds range with the launch of unit trusts for its Global Sustainable Growth (GSG) and Global Energy Transition (GET) funds.
Doug Abbott, Head of UK Intermediary, Schroders said:
“The UK launches of the Schroders Global Sustainable Growth and Global Energy Transition funds provide an exciting opportunity for UK investors to access two high-conviction global portfolios which harness active engagement to improve outcomes for shareholders, but also for the society and environment.”
The GSG fund seeks to provide capital growth by investing globally in the shares of sustainably-run companies that are managed for the long-term and take into account the interests of all stakeholders, including wider society. GSG’s Luxembourg-based equivalent was launched in 2010, and has delivered robust cumulative net ten year performance of 186%.
The GET fund aims to identify growing opportunities across the clean energy-focused investment universe, spanning renewable power production and energy equipment, transmission and distribution, energy storage, smart grid technologies and electric vehicles. Initially launched as a Luxembourg vehicle in 2019 as part of Schroders’ Global Transformation Range, GET has a cumulative net performance of 114%, returning 91.9% in 2020.
Katherine Davidson, Schroders Portfolio Manager, Global Sustainable Growth Fund, said:
“The Covid-19 pandemic has shone a spotlight on how and why companies achieve success, and the emergence of a new social contract between companies and society. How companies treat their staff, manage their supply chains and keep their customers safe is also of growing interest to investors.
“As a result, investors are increasingly assessing company performance based not only on their financials, but also the impact that businesses have on their stakeholders.”
Mark Lacey, Schroders Head of Commodities and Portfolio Manager, Global Energy Transition Fund, said:
“The transition to clean energy is a long-term investment opportunity that will transform the entire energy system over the next 30 years and beyond.
“As we look ahead into 2021, demand for clean energy looks set to rise as costs fall. Improvements in technology and economies of scale mean that renewable energy is now cost-competitive with fossil fuels, even without subsidies. And the desire of consumers for more emissions-friendly technologies – such as electric vehicles – is set to fuel the growth of clean power generation.”