Schroders launches climate change fund

Schroders announces the launch of the Schroders Global Climate Change Fund which opens to investors in September 2007.

The fund is the first of its kind in the UK, offering investors exposure to companies involved in mitigation of (measures to reduce carbon dependency), or adaptation to (changes to adapt to the consequences of), the effects of climate change on a globally diversified basis.

The aim of the Schroders Global Climate Change Fund is to provide long term outperformance of the MSCI World Index from a concentrated portfolio of 50 to 80 stocks comprising the best stock ideas from the fund’s joint managers, Simon Webber and Matthew Franklin.

Stocks will be selected and weightings determined independently of the Index.

Simon Webber, Joint Fund Manager of Schroders Global Climate Change Fund commented: “Investors simply can’t afford to ignore the realities of climate change. Across all sectors, climate change will have a broad and lasting impact along the value chain. For the mainstream equity investor, now is the time to adopt a global approach to what will be a major investment theme for the foreseeable future. Crucially, Schroders has the capability to take a global approach to a global challenge – enabling us to identify the broadest possible opportunity set”

Schroders has established a proprietary database of companies where the effects of climate change have a significant impact on the long-term investment case. Having established the investment universe, the team will focus on the very best ideas that have been identified by Schroders global equity team and locally based equity portfolio managers and sector specialists.

Simon Webber and Matthew Franklin (Joint Fund Managers) will be supported by a team of climate change specialists, global sector specialists as well as Schroders’ wider global network of 80 experienced large and small cap analysts.

Robin Stoakley, Managing Director UK Retail said: “We believe there are excellent returns available by investing in companies which will benefit from efforts to mitigate and adapt to climate change. Dealing with climate change is likely to be the biggest global investment theme of the next 20 years plus.


“The rapidly changing landscape will enable innovative, flexible and well run companies to improve their prospects relative to competitors, leading to strong investment returns. We believe an unconstrained portfolio dedicated to investing in these well positioned companies has the potential to generate very strong investment returns. This is not just about a few wind farms.”