London CIV launches LCIV Global Alpha Growth Paris Aligned Fund
London CIV has launched the LCIV Global Alpha Growth Paris Aligned Fund with GBP485 million in seed investment from two Client Funds.
The sub-fund provides the opportunity for London CIV Client Funds to align their assets with the objectives of the Paris Agreement and will serve as a lower carbon variant of the existing LCIV Global Alpha Growth Fund, which has been on the London CIV ACS platform since April 2016.
The active equity fund will be managed by Baillie Gifford and as part of their process, will be subject to a quantitative screening to remove companies with particular levels of revenue exposure to fossil fuels, including revenue from exploration, production, and service provision to the sector, and will apply a qualitative screening to other companies to explore the balance between vital and discretionary emissions, potential emission reduction pathways, and management’s appetite to adopt a low carbon transition.
Jason Fletcher, Chief Investment Officer at the London CIV, says: "As investors, we play an important role in navigating a pathway to net-zero emissions through alternative investment approaches, and we must hold companies to a higher standard of accountability and transparency. The introduction of the LCIV Global Alpha Growth Paris Aligned Fund reflects London CIV’s efforts to provide long-term, sustainable investment solutions to our Client Funds whilst addressing key socio-economic issues and contributing towards the long-term goals of the Paris Agreement."
Helen Xiong, partner and Global Alpha portfolio manager at Baillie Gifford, says: “We believe that the well-being of future generations carries the same importance as that of the present. As we face one of the greatest challenges of our generation, we have a duty to be a part of the solution. We are proud to be working in partnership with London CIV to deliver the Global Alpha Growth Paris Aligned Fund and help accelerate the transition towards a more sustainable future.”
London CIV also launched a renewable Infrastructure Fund with GBP435 million of commitments from Client Funds in Q1 that gets to the heart of managing climate change. London CIV are also looking at fixed income and passive equity funds that will also look to respond to the climate change challenge.
At the end of March 2021, London CIV assets under management including commitments were GBP12.4 billion. London CIV will continue to develop and launch products, in partnership with Client Funds, to augment the current fund offering for the 32 Clients. As part of their ongoing Responsible Investment strategy, the London CIV have recently published their first Stewardship Policy and Stewardship Outcomes Report.