Schroders has launched European sustainable equity fund, giving investors the opportunity to harness long-term outperformance based on Environmental, Social and Governance (ESG) factors.
The fund builds on Schroders €15bn style-agnostic European blend strategies which are based on extensive bottom-up research, adding Schroders' newly-developed proprietary ESG investment framework.
This method, called Context, aims to identify companies with sector-leading sustainability profiles, as well as those classified as ‘improving', while also screening out those that derive 10% of their earnings from tobacco, weapons, fossil fuels, alcohol or gambling.
Schroder ISF European Sustainable Equity fund will be managed by Nicholette MacDonald-Brown, Schroders' co-head of Pan-European Equity Research and portfolio manager, and Scott MacLennan, Fund Manager.
The fund will draw on the ESG investment expertise of Schroders' Sustainability team, led by Jessica Ground, global head of Stewardship. In total, Schroders manages $63bn in ethically screened mandates, representing 10.7% of the firm's total assets under management.