Aviva Investors launches further climate transition equity fund
Aviva Investors, the global asset management business of Aviva plc, has launched its second equity fund aimed to support the transition to a low carbon economy as global temperatures continue to rise due to climate change.
The Aviva Investors Climate Transition Global Equity Fund aims to outperform global equity markets and will be managed by portfolio manager Jaime Ramos Martin. He will work with climate change specialist and senior ESG analyst Rick Stathers, who has developed proprietary methodology for defining climate investment risk. The new fund follows the Aviva Investors Climate Transition European Equity Fund, which saw its assets under management reach over €1 billion within six months of it launching in August 2019.
The fund will take a long-term, high conviction investment approach, targeting global companies that derive material revenues from goods and services addressing climate change mitigation and adaptation, as well as investing in those companies aligning their business models for a warmer, low-carbon world.
The fund will not invest in stocks exposed to coal, unconventional fossil fuels, Arctic oil and gas production or thermal coal electricity generation, and limits exposure to those producing oil and gas or gas-fired power generation. It will also look to deliver strong performance for clients through a highly-integrated investment approach, connecting the ideas and analysis of the firm’s 27-strong global responsible investment specialists and over 40 equities investment professionals.
David Cumming, Chief Investment Officer, Equities, at Aviva Investors, says: “Addressing climate-related risks is critical. It is an absolute requirement of asset managers and a key ESG focus for our investors. Since launching the Climate Transition European Equity Fund last year, we have seen tremendous interest from clients in the benefits of this type of investment-led solution. Through connected thinking across our investment teams and climate specialists, we expect our focus on this sector to give us an effective edge in our efforts to tackle climate change.”
Jaime Ramos Martin, Portfolio Manager, Aviva Investors Climate Transition Global Equity Fund, says: “We believe that markets are not properly pricing in the consequences of climate change and the necessary measures to mitigate and adapt to the issue. In our opinion, this represents a strong opportunity to deliver superior investment performance and sustainable outcomes for clients through positive climate risk management.”