Principal Asset Management has launched the Global Sustainable Food and Biodiversity Fund, aiming to provide sustainable and thematic products that meet the demands of the market.
This fund is classified as an Article 9 fund under the EU’s Sustainable Finance Disclosure Regulation.
Aimed at institutional and retail investors globally, the fund was borne out of clear, material interest for the strategy across markets. Using fundamental research and a proprietary, UN Sustainable Development Goals (SDGs) alignment tool, companies the fund invests in will be aligned to target SDGs, including zero hunger, good health and wellbeing, clean water and sanitisation and responsible consumption and production.
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Additionally, approximately 80% of the fund’s portfolio holdings are investments in companies that seek to target biodiversity impact through their solutions or business policies.
With the world’s population set to reach 10 billion by 2050, approximately 56% more food will be required to sustain the growth. As such, the demand for sustainable food and biodiversity is growing, with a proliferation of technology within agriculture leading to an acceleration of investment potential while lowering the environmental impact of our food system.
A journey of sustainable impact
Martin Slipsager Frandsen, global equities portfolio manager, Principal Asset Management, said: “Sustainable food production is the most credible path to improving biodiversity. With agriculture remaining the most biodiversity-exposed sector, it holds the greatest potential for impact and we believe current demand for biodiversity will lead to great investment opportunities.”The fund will seek to provide capital growth through investments in companies committed to sustainable agriculture and food security. It targets food and agriculture-related investments in various sectors, specifically in companies emphasising nutrition and agricultural/environmental operating efficiency.
