Wellington Management is to launch a climate strategy which targets companies that are successfully mitigating or adapting to climate change.
The Wellington Climate Strategy is Ucits compliant and will invest globally in companies that have directly addressed environmental sustainability or climate risks through their products, services or capital. It aims to deliver long-term total returns.
Themes the fund will invest in include low-carbon electricity, energy efficiency, water and resource management and low-carbon transport.
The fund will be led by global industry analyst Alan Hsu who has been with the firm for a decade conducting research on utilities, renewable energy and clean tech sectors.
Hsu will work closely with other Wellington global industry analysts on the fund and use insights from the firm’s ESG research team.
“We believe climate science, public policy and technology improvements will move us to a low-carbon future, with clear winners and losers along the way,” said Hsu. “Efforts to mitigate carbon or adapt to its impact across all sectors and regions create both risks that should be hedged and opportunities for potential long-term capital investment.”
Stefan Haselwandter (pictured), senior managing director, head of EMEA global relationship group, said Wellington’s partnership with Woods Hole Research Centre would also provide Hsu and his team with additional input.
The partnership, announced late September, forms part of Wellington’s aim to integrate climate science and asset management and meet growing institutional and wholesale demand for sustainable products, said Haselwandter.
Wellington Management currently has more than $1trn in assets under management.
