Demand for sustainable investments sees ING IM launch Ucits fund
Strong demand for sustainable investments has caused ING Investment Management to launch a retail version of its seven year old institutional European Sustainable Equity strategy.
ING IM says that in the past two years the institutional strategy, which was launched in 2005, has grown four-fold in size.
The retail version – ING Europe Sustainable Equity fund – has been launched with €40m in AUM as a Luxemburg domiciled Ucits. The new fund will be available to both retail and institutional investors in Europe and Asia.
ING IM has some €1.15trn in assets under management in sustainable strategies overall, having launched the first one in April 2000.
The latest fund uses environmental, social and governance (ESG) factors combined with financial analysis at the company level to make investment decisions, resulting in a portfolio of some 50-90 names. The fund is aiming to outperform the MSCI Europe Net Index by 2% annually.
Hendrik-Jan Boer, head of Sustainable Investments at ING IM, said: “We believe that now is a good time to invest in European equities and we feel that sustainability is an important value driver. It is the key factor in identifying corporate quality. Academic and market research increasingly demonstrate that attention to the quality of environmental, social and governance factors can boost corporate profitability and competitiveness and thus the return of equity portfolios as well.”