Frankfurt-based asset manager Union Investment has launched a fund that uses the United Nations’ sustainable development goals as criteria in its investment process.
Aimed at institutional investors, the UniInstitutional SDG Equities fund invests in companies around the world that operate in business sectors connected to the UN goals.
The fund’s investment universe comprises around 1,200 companies, of which around 60 were selected for the concentrated portfolio. They include companies in the water management, healthcare, renewable energy and green transport sectors.
Companies are eligible for the fund’s investment universe if over 20% of their revenue comes from activities that are relevant to the sustainable development goals. Across the fund, the average revenue from goal-related activities must be 50%.
Jörg Schneider, portfolio manager at Union Investment, said this policy ensured that at least half of the fund’s assets were being used for sustainable investment purposes.
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