The Global Environmental Enterprises Fund will launch on 16 June in conjunction with Osmosis Investment Management, against whose climate solutions index the fund will be benchmarked.
Managed by Legal & General Investment Management’s Robert Dowling, the fund will look to capitalise on the three themes that make up the Osmosis Climate Solutions index: energy efficiency, low carbon production and water, waste and pollution control.
The fund is structured as a global equity growth fund, and will sit in the global growth sector. The fund has a 33% weighting to the US, with 27% allocated to Asia-Pacific countries and 30% in Europe, a regional exposure that reflects developments in the three investment themes.
Only “pure-play” companies – those who generated more than 50% of their revenues from activities in one of the three sectors – are eligible for inclusion in the fund. Example holdings include Taiwanese firm Epistar, Italian power company Enel Green Power and Waste Management firm Shanks.
“This is not about green investing, or about screening things out. We believe this market has been completely underexploited by UK investors. This has 15 to 20 years of legs in it at least as a long-term investment theme”, says Ellis.
