NETHERLANDS – Sustainable Asset Management’s (SAM) flagship strategy SAM Smart Energy has surpassed the $1bn mark on the back of interest from institutional investors.
One Asian sovereign wealth fund recently invested $500m in the fund, which launched in 2003. Nearly all the fresh money into Sam's funds this year came from institutional investors, among them European, Asian and UK pension schemes. The Smart Energy fund now touts $1.3bn in assets.
Michael Baldinger, head of global clients at SAM, declined to name the SWF, but said it made the allocation via a managed account towards the end of the first half.
This reflects an increasing tilt towards institutional investors at the $13.7bn Swiss-based investment boutique that sits within Dutch asset manager Robeco.
The Smart Energy fund is one of 10 products at the house, which focuses solely on sustainability investing
The range focuses on a breadth of areas from water-related equities to equities linked in some form to climate change, to smart materials, ‘healthy living' and private equity investments in clean technology.
Baldinger says: "Global pension funds look at our funds as part of their ‘sustainability factors' allocation. For a while it has been about educating funds about the area, but now they understand the sector." He said pension funds are increasingly important to SAM.
SAM's institutional investors now comprise about half of its investor base. At the start of this year they made up 40%, with private sophisticated investors making up the rest.
While some institutional interest has been driven by an increasing general focus on socially responsible investing, Baldinger differentiated this to the investing style at SAM.
SAM integrates sustainability factors into its traditional investment analysis, whereas ethical-driven SRI managers are left with a range of companies only after some companies are excluded on various grounds.
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