Luxembourg-headquartered asset manager Candriam has launched the Candriam SRI Equity Climate Action, an impact fund investing in global companies providing long-term climate change solutions.
The actively managed fund is part of a growing trend of carbon neutral funds that focus on combines sustainability and thematic investing in the face of growing global concerns about global warming.
As global average temperatures are rising, and extreme weather events are increasing, the scientific evidence for climate warming has become unequivocal, the group said in a statement.
The international community has recognised the need to keep warming below 2°C, which requires a major shift in economic activities and a re-allocation of capital to align with this objective, it added.
The fund aims to identify the structural winners in climate change solutions. A bottom-up selection looks at those companies providing prime solutions in energy efficiency, renewable energy and storage, recycling, waste and water management.
Koen Popleu, lead portfolio manager of the fund: “Climate change is an unprecedented challenge, but also a multi-decade investment opportunity. Investors can join corporates in their response to the environmental challenges by identifying the future leaders of climate change action. Our diversified quality growth portfolio aims to significantly outperform over an economic cycle.”
Candriam existing thematic funds include biotech, robotics, demographic and oncology strategies representing over €3bn in assets under management.
The Candriam SRI Equity Climate Action is a sub-fund of Candriam SRI, domiciled in Luxembourg and it is managed by Candriam Luxembourg.