Franklin Templeton has launched an emerging markets equity fund that focuses on one or more of the positive outcomes linked to the UN’s Sustainable Development Goals.
Managed by Andrew Ness and Chetan Sehgal, the fund seeks to invest in emerging markets companies that demonstrate “good or improving” sustainability criteria, according to the US fund manager.
The Templeton Emerging Markets Sustainability Fund will also apply specific ESG exclusions and will not invest in companies that are involved in weapons, tobacco, coal and unconventional oil and gas extraction, or whose actions have violated the United Nations Global Compact, the firm said.
According to Julie Moret, global head of ESG, the fund adopts a proprietary framework that reflects “key emerging market megatrends such as demographic shifts, urbanisation and technological innovations”.
Moret added that these open up new opportunities from improving awareness of sustainability issues in emerging countries.
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