The new strategy will use Bridgewater’s famed “All Weather” asset allocation framework to create its portfolio.

Bridgewater Associates, the world’s largest hedge fund, has unveiled the Lyxor/Bridgewater All Weather Sustainability Fund, which will use a UCITS-compliant investing strategy seeking a range of assets compliant with the United Nation’s 17 Sustainable Development Goals (SDG) benchmarks. (HedgeWeek)

The fund is geared towards investors who need to fulfil both financial and sustainability targets at scale.

Lyxor/Bridgewater All Weather Sustainability Fund

The new fund, to be managed by Lyxor Asset Management, and sub-advised by Bridgewater, already has about $2 billion of capital commitments.

Bridgewater’s co-CIOs for sustainability, Karen Karniol-Tambour and Carsten Stendevad, will manage the fund.

According to Stendevad, sustainable investing is now a “strategic priority” for Bridgewater and its clients, and that there was “a fundamental shift in the investment community, with the expansion of objectives from risk and return to also include impact.”

Nathanael Benzaken, Lyxor’s chief client officer, said: “Our clients’ appetite for sustainable investing has grown significantly in recent years, with investors seeking to combine financial and sustainability outcomes.”

ESG assets on track to exceed $50trn by 2025

According to Investment Week, which quoted the Global Sustainable Investment Association, ESG assets surpassed $35 trillion in 2020, up from $30.6 trillion in 2018 and $22.8 trillion in 2016, reaching a third of current total global assets under management.

Assuming 15% growth, half of the pace of the past five years, ESG assets could exceed $50 trillion by 2025, Investment Week projected.

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