Aviva Investors has launched two funds in an expansion of its sustainable transition range, which is underpinned by the United Nation’s Sustainable Development Goals (SDGs).
The Aviva Investors Social Transition Global Equity fund and the Aviva Investors Natural Capital Transition Global Equity fund have been added to the range, which already comprises the Aviva Investors Climate Transition Global Equities, European Equities, Global Credit and Real Assets funds.
The new Social Transition fund is aligned with SDGs five, eight and 10, and ;will invest in companies that are changing their business models to “respect human rights, promote decent working conditions and engage in responsible corporate behaviour”.
Aviva Investors said that businesses in breach of established social principles, or those involved in “severe” social controversies, will be excluded from the fund.
The Social Transition fund will be managed by Richard Saldanha and Matt Kirby, as well as senior impact analyst Vaidehee Sachdev, and will donate 5bps of its management fee to social impact projects.
Portfolio managers Julie Zhuang and Jonathan Toub and senior impact analyst Eugenie Mathieu will manage the Natural Capital Transition fund, which is aligned to SDGs 12, 13, 14 and 15.
The fund intends to invest in companies that provide solutions and are transitioning their business models across the themes of sustainable land, sustainable oceans, the circular economy and climate change, excluding firms involved in “certain harmful activities or severe environmental controversies”.
Mark Versey, CEO of Aviva Investors, the global asset management business of Aviva, said: “As well as growing their wealth, people want to know that their money is making a positive contribution to climate change, a fairer society and protection of the natural environment. The two objectives are equally important and aligned – we call this investing with purpose.
“There has, quite rightfully, been much focus on the path to net zero carbon emissions during the UN Climate Change Conference (COP26), but we should not forget that social issues and biodiversity are also important drivers of the transition to a fair and sustainable economy.”
Versey said that given 21% of the global population lives in extreme or moderate poverty and only 27% of global managerial positions are occupied by women, while 14 of the 18 ecosystem services on which society depends have been degraded or are in decline, “the time to act is now”.
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