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The heat is on

With climate change an on-going issue for everyone across the globe, it seemed a question of when, as opposed to if, a fund management firm would decide to launch a vehicle that revolves around the arena.

As with the London bus adage, two fund managers have almost simultaneously announced that they are now ready to tackle the issue in order to build another tranche to their offerings.

Schroders’ launch came with a strong message from the group’s CIO Alan Brown that the state of the environment is finally finding a way onto the public radar after untold years of shunning the issue.

In Brown’s own words he said that the market was reaching a “tipping point” stating that climate change will affect all investment sectors across the globe, with the exception of banks and healthcare.

It’s an interesting premise. A 50 to 80 stock portfolio that will look purely at companies who are working towards the mitigation or adaptation to the effects of global climate change.

Jupiter has also had a green week, not only are they introducing a C-share to Charlie Thomas’s green investment trust in order to build up the size of the fund, but the group is also looking for approval to bring Thomas’s climate change solutions fund onshore.

Advisers may take to the pro-activeness of these funds, after all temperatures are rising and bringing the problem of greenhouses gases along in tow. All of this has reached the point where both government and public awareness has peaked with both now trying to do something about it.

But the bottom line is these funds need the flexibility of investment in order to make enough profit for the fund managers. Schroders is pretty adamant that this is not an SRI (socially responsible investment), while Jupiter has not acknowledged whether this fund is ethically restrained.

Yes the argument does hold water that climate change is not just restricted to ethically aware companies, but there has to be a worry that these funds could miss a big “fad” in the market and may want a piece of that action.

Does this mean that green themes can then fall in grey areas? Add to that the battle between advertising restraint on protecting the environment and developing nations looking towards economic growth and you have an awful lot of ingredients in the melting pot.


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