Legal & General Investments is launching a passive fund that will seek to capitalise on growth from 100 selected companies working to reduce global carbon dioxide emissions.
The Global Environmental Enterprises Fund will invest primarily in companies that are “profiting from the global response to energy scarcity, pressures on natural resources and the shift to a lower carbon world economy”, said the company. These could include firms generating energy from low-carbon sources or working on energy efficiency measures. Waste management firms and water supply companies may also fall within its remit.
According to research from HSBC Global, these environmental markets are worth $700bn today but will be valued at $2.2trn by 2020.
Simon Ellis, managing director of L&G Investments, says the fund will “allow investors to invest at the right price in one of the major investment themes of this decade”.
©2011 funds europe
