Aberdeen Standard Investments (ASI) said on Monday it has launched the Multi-Asset Climate Solutions (MACS) Fund in partnership with The Big Issue Group (TBIG).
Aberdeen Standard manages assets of around £456 billion and is the asset management business of Edinburgh-based Standard Life Aberdeen.
“The fund is designed for those who want to invest in companies whose products and services play a decisive role in mitigating climate change and building a more sustainable future,” said Aberdeen Standard.
“These companies are expected to grow rapidly as the world accelerates its shift towards net zero carbon emissions.
“A multi asset fund enables investors to invest across a range of different assets classes.
“MACS therefore provides investors with the opportunity to actively participate in the climate shift whilst spreading risk across equities, bonds and real estate.”
ASI said the fund will invest in renewable energy, electric vehicles, smart working, energy efficient buildings and other green technologies.”
“While it is driven primarily by its positive selection criteria, it will ensure it has no exposure to fossil fuel producers and a list of other controversial activities,” said Aberdeen Standard.
Aberdeen Standard has committed to sharing 20% of the net revenue generated by the fund to support TBIG’s social causes.
MACS will be managed by lead fund manager Craig Mackenzie, Head of Strategic Asset Allocation, as well as Chris Paine, Investment Manager, and Fiona Ritchie, ESG Investment Manager, Multi-Asset Solutions.
Mackenzie said: “We have searched the globe to find companies whose products drive the shift to a zero-carbon green economy.
“Renewable energy, electric vehicles and other green technologies are likely to expand rapidly in the coming decades, offering a strong growth opportunity.
“Our multi-asset approach diversifies risk across asset classes, allowing our customers to put their money to work financing the climate transition with less volatile investment returns.”
The Big Issue Group chair Nigel Kershaw said: “The Big Issue’s mission is to build a world that works for everyone, for now and for future generations.
“This fund is a natural extension of our mission, given that the negative effects of climate change are likely to have a disproportionate impact on vulnerable people across the world.
“We are proud of our partnership with Aberdeen Standard Investments and are excited to bring such an innovative product to market.”
Aberdeen Standard said it has selected FTSE Russell as its climate solutions data provider.
Arne Staal, Global Head of Research and Product Management, FTSE Russell, said: “We are delighted that ASI has selected our Green Revenues 2.0 data for the launch of its innovative new Multi-Asset Climate Solutions fund.
“ASI has been early to recognise that green revenues data used to quantify a fund’s alignment to the green economy will be essential in complying with the incoming EU Taxonomy disclosure requirements for sustainable investment products by the end of 2021.”
MACS will initially be available to financial advisers through Standard Life’s Wrap and Elevate platforms, amongst other in due course.
After the fund has been assessed, retail investors will also be able to access it directly through The Big Exchange, the UK’s first online investment platform to list only funds that are rated for their positive impact on the planet and society.