Fulcrum Asset Management is set to launch the first active diversified global climate-aligned equity fund.
The Fulcrum Climate Change Fund is aligned with the Paris Agreement's target of keeping the global temperature rise this century below 2 degrees.
Fulcrum has partnered with environmental transition firm Iceberg Data Lab to ensure the designed fund is in line with science-based international best practice.
The fund will aim provide investors with diversified exposure to the global equity market, while maintaining a weighted-average portfolio temperature of below 2 degrees.
It is expected to hold between 150 and 200 stocks invested across 25 themes. No company within the portfolio will have a higher temperature than 2.5 degrees.
Chief executive Andrew Stevens said the fund lunch followed client demand for "an ambitious and innovative climate change solution".
"We believe that we have a unique opportunity here to bring to the market something that could have a real effect on climate change mitigation while still providing diversified exposure to the global equity market," he added.
Square Mile Investment Consulting and Research managing director Richard Romer-Lee added: "There is broad popular support for taking active steps to ensure that the objectives of the Paris Agreement are met, and by allocating capital to companies that are aligned with its principles and which encourage the transition to a greener economy, asset managers can make a significant impact in the battle against climate change."
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