Columbia Threadneedle targets sustainable outcomes with two Lux fund launches

Pedro Gonçalves
clock • 2 min read
Columbia Threadneedle targets sustainable outcomes with two Lux fund launches

Columbia Threadneedle Investments has rolled out two new Luxembourg-domiciled funds in response to growing investor demand for strategies that target positive sustainable outcomes. 

The Columbia Threadneedle (Lux) Sustainable Outcomes Global Equity and the Columbia Threadneedle (Lux) Sustainable Outcomes Pan-European Equity funds complement the UK sustainable equity strategy launched in 2015.

Columbia Threadneedle's Sustainable Outcomes funds are concentrated equity strategies (one global, one Pan-European) that invest in high-quality companies targeting positive sustainable outcomes and strong financial returns. The funds focus on eight themes, drawn from the United Nations Sustainable Development Goals (SDGs), which focus on key sustainable development needs. 

Companies are on the path to more sustainable governance, operations and products. We will direct capital to those companies with the strategy, will and potential to enable these shifts."

The portfolio managers, Pauline Grange and Andrea Carzana, work with Columbia Threadneedle's fundamental research and RI analysts to build a portfolio of companies that align with these themes and criteria. 

Michaela Collet Jackson, head of distribution, EMEA at Columbia Threadneedle Investments, said: "We know that investors want to support solutions to the world's sustainability challenges. Demand for sustainable investment is growing as governments work toward achieving global climate and social goals, and we have seen this intensify as the consequences of the coronavirus pandemic are assessed."

Pauline Grange, portfolio manager of the Columbia Threadneedle (Lux) Sustainable Outcomes Global Equity fund, added: "In a world of societal and environmental change, companies that set out to invest and innovate for a more sustainable future not only support the planet and its inhabitants, but also their potential to generate strong financial returns and stable growth over the long-term. 

"As active investors, we encourage firms to adjust practices and innovate for solutions - not just to manage ESG risk, but to also create opportunities to deliver positive change aligned to the Sustainable Development Goals.  Importantly, those companies must be consciously thinking about, and acting on their impact."

The strategy underlying the Columbia Threadneedle (Lux) Sustainable Outcomes Global Equity has been running as a separate strategy for institutional clients.

Andrea Carzana, portfolio manager of the Columbia Threadneedle (Lux) Sustainable Outcomes Pan-European Equity fund, said: "Investor demand for sustainable equities is a structural shift supported by governments and society to address environmental and social issues.Companies are on the path to more sustainable governance, operations and products.  We will direct capital to those companies with the strategy, will and potential to enable these shifts."

First published by our sister title Investment Week

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