Schroders has launched its European Sustainable Equity Sicav which incorporates the firm’s blend strategies with environmental, social, and governance (ESG) research.
The fund aims to identify companies with sector-leading sustainability profiles, as well as those considered as “improving”. It will also screen out firms that derive 10% of their earnings from tobacco, weapons, fossil fuels, alcohol, or gambling.
This will then be incorporated with the firm’s blend strategy which is based on bottom-up research.
The Schroder ISF European Sustainability Equity fund’s manager, Nicholette MacDonald-Brown said there was significant demand for solutions that had a focus on sustainability.
Schroders’ global head of stewardship, Jessica Ground, said: “This fund channels the expertise of Schroders’ sustainability team to provide clients with an opportunity to pursue outperformance safe in the knowledge their money is invested in European companies which have a demonstrably strong or actively improving sustainability profile”.