Cumulative net ten-year performance of 186%
Schroders has launched two UK unit trusts – Global Sustainable Growth (GSG) and Global Energy Transition (GET) – to add to its growing range of UK vehicles focused on sustainability.
GSG has delivered a cumulative net ten year performance of 186%, while GET has a cumulative net performance of 114%, since inception. In particular, they produced returns of 27.5% and 91.9% last year.
The launches add to a growing range of UK funds and investment trusts focused on sustainability as Schroders says it is committed to providing a sustainable fund range to meet the evolving needs of UK investors.
Doug Abbott, head of UK Intermediary, Schroders, said: “The UK launches of the Schroders Global Sustainable Growth and Global Energy Transition funds provide an exciting opportunity for UK investors to access two high-conviction global portfolios which harness active engagement to improve outcomes for shareholders, but also for the society and environment.
“Although 2020 was a challenging year for economies, investment strategies focused on sustainable companies and renewables performed well.
“It is clear that UK investors’ attitudes towards allocating to sustainable investments is changing and we are very pleased to continue to grow our range of offerings to UK investors.
“Schroders has recently achieved the milestone of fully integrating ESG factors into our decision-making across all of our investments, fulfilling our intention announced in November 2019.
He added: “These funds alongside our other sustainable offerings, such as the Global Cities fund and Schroder BSC Social Impact Trust Plc, will certainly help UK investors achieve their goals as we continue to look to grow our UK domiciled range of dedicated sustainable funds and investment trusts during 2021.”
The Schroder Global Sustainable Growth fund seeks to provide capital growth by investing globally in the shares of sustainably-run companies. These are businesses that are managed for the long term and take into account the interests of all stakeholders, including wider society.
Katherine Davidson, managers of Schroders’ Global Sustainable Growth fund, added: “The Covid-19 pandemic has shone a spotlight on how and why companies achieve success, and the emergence of a new social contract between companies and society. How companies treat their staff, manage their supply chains and keep their customers safe is also of growing interest to investors.
“As a result, investors are increasingly assessing company performance based not only on their financials, but also the impact that businesses have on their stakeholders.
“One of the few positives of the crisis is that it has enabled us to start engaging with companies who previously hadn’t seen the business case for sustainability. Capital markets have rewarded companies that have acted responsibly through the pandemic, as demonstrated by the broad-based outperformance of sustainable funds and indices.”
The Schroder Global Energy Transition fund aims to identify growing opportunities across the clean energy-focused investment universe, spanning renewable power production and energy equipment, transmission and distribution, energy storage, smart grid technologies and electric vehicles.
Mark Lacey, Schroders’ head of commodities and manager of the Global Energy Transition fund, commented: “The transition to clean energy is a long-term investment opportunity that will transform the entire energy system over the next 30 years and beyond.
“As we look ahead into 2021, demand for clean energy looks set to rise as costs fall. Improvements in technology and economies of scale mean that renewable energy is now cost-competitive with fossil fuels, even without subsidies. And the desire of consumers for more emissions-friendly technologies – such as electric vehicles – is set to fuel the growth of clean power generation.”