Aberdeen Standard Investments launches multi-asset climate solutions fund
Aberdeen Standard Investments (ASI) has launched the Multi-Asset Climate Solutions (MACS) Fund in partnership with The Big Issue Group.
The fund is designed for those who want to invest in companies whose products and services play a decisive role in mitigating climate change and building a more sustainable future. These companies are expected to grow rapidly as the world accelerates its shift towards net-zero carbon emissions.
A multi-asset fund enables investors to invest across a range of different assets classes. MACS, therefore, provides investors with the opportunity to actively participate in the climate shift whilst spreading risk across equities, bonds and real estate.
The fund will invest in renewable energy, electric vehicles, smart working, energy efficient buildings and other green technologies. While it is driven primarily by its positive selection criteria, it will ensure it has no exposure to fossil fuel producers and a list of other controversial activities.
The Big Issue Group (TBIG) partnered with Aberdeen Standard Investments (ASI) due to its strong multi-asset capabilities and expertise in ESG investing.
TBIG’s long-standing commitment to dismantling poverty and providing a wide range of opportunities to those in need, offered a fitting opportunity to partner with ASI on MACS. The Fund also benefits from guidance from the Climate Advisory Group which consists of ASI, TBIG and external experts whose responsibility is to review the investment framework.
Furthermore, ASI has committed to sharing 20% of the net revenue generated by the Fund to support TBIG’s social causes. The Big Issue magazine works with over 1,700 vendors to earn a living by selling the magazine. In 2021 it will continue to create more employment opportunities for vulnerable and unemployed people.
The group’s work also includes direct investment into more than 350 social enterprises across the UK. With 60% of investments made into the most deprived communities in the UK, TBIG’s investees provide 9,000 jobs and serve over one million people.
MACS will be managed by lead fund manager, Craig Mackenzie, Head of Strategic Asset Allocation, as well as Chris Paine, investment manager, and Fiona Ritchie, ESG investment manager, Multi-Asset Solutions.
Craig Mackenzie, lead fund manager of MACS, ASI, said: “We have searched the globe to find companies whose products drive the shift to a zero-carbon green economy. Renewable energy, electric vehicles and other green technologies are likely to expand rapidly in the coming decades, offering a strong growth opportunity. Our multi-asset approach diversifies risk across asset classes, allowing our customers to put their money to work financing the climate transition with less volatile investment returns.”
Nigel Kershaw OBE, chair of The Big Issue Group, added: “The Big Issue’s mission is to build a world that works for everyone, for now and for future generations. This Fund is a natural extension of our mission, given that the negative effects of climate change are likely to have a disproportionate impact on vulnerable people across the world. We are proud of our partnership with Aberdeen Standard Investments and are excited to bring such an innovative product to market.”
ASI has selected FTSE Russell as its climate solutions data provider. ASI will use FTSE Russell’s industry leading new Green Revenues 2.0 data model which measures the green revenue exposure of portfolio companies to comply with the incoming EU Taxonomy. The regulation defines those economic activities that play a key role in the transition to the green economy.
Arne Staal, global head of research and product management, FTSE Russell, said: “We are delighted that ASI has selected our Green Revenues 2.0 data for the launch of its innovative new Multi-Asset Climate Solutions fund. ASI has been early to recognise that green revenues data used to quantify a fund’s alignment to the green economy will be essential in complying with the incoming EU Taxonomy disclosure requirements for sustainable investment products by the end of 2021.”
MACS will initially be available to financial advisers through Standard Life’s Wrap and Elevate platforms, amongst other in due course. After the Fund has been assessed, retail investors will also be able to access it directly through The Big Exchange, the UK’s first online investment platform to only list funds that are rated for their positive impact on the planet and society.