Aviva Investors has launched a new fund to support the transition to a low carbon economy as global temperatures continue to rise due to climate change.
The Aviva Investors Climate Transition European Equity dund, which is supported by a €100m seed investment from Aviva France and aims to outperform European equity markets, will be managed by portfolio manager Francoise Cespedes. She will work with Rick Stathers, senior global responsible investment analyst and climate change specialist, who will develop the methodology for defining the investment universe on the Fund.
The fund will take a long-term, high conviction investment approach, targeting companies deriving material revenues from goods and services addressing climate change mitigation and adaptation, as well as investing in those companies aligning their business models for a warmer, low-carbon world.
The fund will not invest in stocks exposed to coal, unconventional fossil fuels, Arctic oil and gas production or thermal coal electricity generation, and limits exposure to those producing oil and gas or gas-fired power generation. It will also look to deliver strong performance for clients through a highly-integrated investment approach, connecting the ideas and analysis of the firm's 18-strong global responsible investment team and over 40 equities investment professionals.