Alternative Investments/ESG: Two New Sustainable Funds From Close Brothers

Close uses a three-stage process to identify investments with sustainable characteristics and good return potential.

Close Brothers Asset Management (CBAM), which manages assets worth over £12.6 billion (US$ 16.4 billion), is part of the Close Brothers Group plc (LON: CBG), a FTSE 250 leading UK merchant banking group. Established in 1878, Close is one of the UK’s largest and longest established providers of financial advice and investment management.

CBAM is launching two new sustainable funds following demand from clients and intermediaries for funds that invest in ways that show concern and respect for the natural environment, for human dignity, and responsible corporate behavior. (WealthAdviser)

The two new funds, both actively managed, are the Close Sustainable Balanced Portfolio Fund and the Close Sustainable Bond Portfolio Fund.

Close Sustainable Balanced Portfolio Fund

This fund aims to generate capital growth with some income over the medium term (> 5 years).

It invests in shares, bonds, ETFs, third party funds, and alternatives.

Alternative investments are centered around sustainable themes, for example:

  • Property – opportunities in social housing and sustainable farming
  • Infrastructure – opportunities in solar and wind power, as well as in schools and hospitals
  • Commodities – precious metals that are certified as responsibly sourced by relevant trade bodies

Close Sustainable Bond Portfolio Fund

This fund seeks to generate income while preserving capital value over the medium term (> 5 years).

It invests in bonds (corporate and government), third party funds (investment funds managed by other firms including unit trusts), and other fixed-income securities

Both funds follow a 3-stage screening process

In Stage 1 (Ethical Screen), the managers exclude unethically exposed sectors such as tobacco, oil, weapons, gambling, pornography, alcohol, and animal testing for cosmetic purposes.

For Stage 2 (ESG Screen), the managers identify investment opportunities with positive ESG ratings and sustainability records.

In Stage 3 (Analysis and Valuation), the managers assess those opportunities that are likely to deliver the best returns. For shares, they consider risk, profitability, and earnings growth. For bonds, the factors are YTM, liquidity, and relative value.

Related Story:   European Investors Prioritizing ESG Factors In ETFs (Cerulli)                                               

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Digital Assets: HAIC I, The New Crypto Fund From A German Private Bank Targets Institutions
December 4, 2020     Digital Assets, News

German private bank Hauck & Aufhäuser Privatbankiers AG will soon provide investors the opportunity to obtain long-term exposure to leading, large-cap cryptocurrencies such as bitcoin, ether, and stellar. The bank’s…
FinTech: Stripe’s New ‘Treasury’ Product Offers Bank Accounts To Its Platform Partners
December 4, 2020     FinTech, News

Stripe launches Stripe Treasury in major expansion of financial services offering for platform partners
Alternative Investments/ESG: Fidelity Launches ETF Focused On Sustainable Emerging Market Companies

Joyce Chang, chair of global research at JPMorgan, told CNBC’s “Street Signs Asia” on Thursday that stocks in emerging markets “were very under-owned” considering the overall rally in the equity…
Venture Capital: Space Perspective Scores $7M For Its Sub-Orbital Balloon Junkets
December 4, 2020     Latest News, News, Venture Capital

Space Perspective is a startup planning to offer high-altitude (read: “edge of space”) trips in Spaceship Neptune, a pressurized capsule suspended from a balloon. It announced Wednesday its raise of…