US-based Allspring Global Investments has expended its suite of climate transition funds with the addition of a global equity fund.
The fund, managed by Allspring’s Systematic Edge Equity team, aims to provide investors with a diversified global equity portfolio with the dual objectives of targeting excess returns versus the MSCI All Country World Index and reaching net zero by 2050.
Previously, the fund operated as the Allspring 2 Degree Global Equity Fund, launched in 2021. The main change is the introduction of a formal net-zero 2050 target.
The target is intended to be achieved by setting a cap on the weighted average carbon intensity for the fund that is lower than that of the MSCI ACWI, with the cap reducing along a trajectory aiming to decarbonise the fund by 2050.
Peter Weidner, senior portfolio manager and head of the systematic edge equity team at Allspring, said, “We believe that identifying climate transition winners does not necessarily mean solely investing in the low-carbon companies of today but rather in companies that should win in a low-carbon world of tomorrow.
“We use forward-looking transition pathway assessments to identify these companies, helping to reduce risk and capture opportunities presented by the transition to a decarbonised economy”.
The fund is registered for distribution in the UK, Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Norway, Portugal, Singapore, South Korea, Spain, Sweden and Switzerland and for professional investors only in Hong Kong.
Allspring has US$570 billion under advisement.
