The fund, which is seeded by UBS Global Wealth Management through its 100% sustainable investing initiative, is designed to deliver long-term capital growth while delivering a positive impact on the world in which we live. This is achieved through targeted, impact-focused, active engagement with investee companies, using the Sustainable Development Goals as a framework.
It is managed by Jamie Jenkins and the London-based global equities team, who also run BMO's flagship Responsible Global Equity Strategy.
The BMO SDG Engagement Global Equity fund will hold between 40 to 60 carefully selected global small- and mid-cap equities, all of which meet strict criteria around quality and value. Additionally, only companies where we see scope for driving improvement towards SDG targets, through a tailored programme of engagement, warrant a place in the portfolio.
Mark Haefele, chief investment officer at UBS Global Wealth Management, said: "In our view, responsibly engaging with public companies and changing their behaviour for the better is one of the most exciting new areas of impact investing. It also forms a core part of our 100% sustainable cross-asset portfolio for private clients. By improving their social and environmental performance, firms can mitigate risks, support their brands, and take advantage of sustainable business opportunities. For investors, successful engagement should be a win-win result."
Commenting on the new fund, David Logan, head of Distribution at BMO Global Asset Management, said: "The BMO SDG Engagement Global Equity fund is representative of what investors are asking for today and demonstrates the developments we have seen in this area over the last 35 years.
"Our 16-strong Responsible Investment team provides the analysis, engagement and voting for securities the investment team invest in, whether in this fund or across any fund at BMO."