Friends Provident International has launched a new Environmental, Social and Governance (ESG) fund range featuring thematic equity funds whose portfolios invest in companies that contribute to positive societal change.
The funds fall into one of the following six themes:
• Climate change
• Resources and energy
• Human development
• Water and waste
Evidence shows that funds which integrate ESG are not only becoming more popular but also more successful."
The Responsible Investing sector is supported by investment tools and educational articles, aimed at investor education.
To help advisers and clients evaluate how investment funds are meeting ESG challenges, FPI's interactive fund centres feature the Morningstar Sustainability Rating, which quantifies the management of ESG risks in the form of 1-5 globes (5 being high, 1 being low).
Funds that exhibit low overall carbon risk and have lower-than-average exposure to companies with fossil-fuel involvement will also feature a Low Carbon icon.
FPI's investment marketing manager Chris Corkish said: "We know investors are looking more than ever for funds that invest in a responsible manner. As a result, more fund managers are integrating the assessment of ESG criteria into their asset allocation processes.
"Evidence shows that funds which integrate ESG are not only becoming more popular but also more successful.
"This means investors no longer have to sacrifice performance in order to invest in funds that are doing the right thing.
"They can invest with both their head and their heart."