F&C to launch Global Climate Opportunities Fund

F&C is expanding its sustainable investment product range with the launch of a new fund investing in companies that provide the technologies and systems to reduce greenhouse gas emissions, and those that will help society address the reality of climate change.

The F&C Global Climate Opportunities Fund will leverage the firm's market-leading experience in sustainable investment and its pioneering pedigree in developing global products.

The F&C Global Climate Opportunities Fund will seek to identify the companies best positioned to develop leading technologies, products and services aimed at mitigating or adapting to the effects of climate change, without any negative screening or regional benchmark restrictions. This will give the managers the opportunity to invest in potential market leaders, irrespective of sector, size or geographic location.

"Climate change is going to have a revolutionary impact on the global economy and our new Fund will offer investors significant growth potential by picking companies who harness the opportunities from this change" , said Sophie Horsfall, the fund's co-manager. "Our investment scope is considerably broader than an alternative energy fund, with nine clear growth themes driven by climate change. F&C brings unrivalled resources and experience in analysing these trends and spotting the winners of tomorrow."

The nine investment themes represent a holistic approach to the problems posed by climate change, not only addressing the development of alternative energy industries but also identifying the broader technologies, support systems and advanced materials that will underpin emissions reductions. The portfolio will also look at the long-term adaptation that will be prompted by climate change, ranging from necessary infrastructure to acclimatisation measures in areas such as agriculture and health. Divided in three different segments, the investment themes are:

Mitigation: Alternative Energy, Energy Efficiency, Sustainable Mobility, Waste, Advanced Materials and Forestry & Agriculture

Adaptation: Water and Acclimatisation

Supporting services: including carbon trading, consultancy and other related areas.

The portfolio co-managers, Sophie Horsfall and Terry Coles, will leverage the resources of F&C's 15-strong Governance and Sustainable Investment (GSI) team which includes leading climate change expert, Vicki Bakhshi, a former senior researcher on the Stern Review on the Economics of Climate Change and climate change policy adviser to 10 Downing Street. The team will advise the fund managers on policy developments, and on how proposed additions to the portfolio fit within the nine themes.

"With the consequences of climate change now being acted upon at the highest levels of government, we are going to see significant policy changes. We have the largest dedicated GSI investment team to be able to analyse these developments and their impact on corporate behaviour, "Bakhshi said.

The F&C Climate Opportunities Fund will be structured as a Luxemburg SICAV fund with Euro and Sterling share classes. Initially it will be open to institutional investors while F&C seeks regulatory approval for retail distribution.