Union Investment has launched a fund focusing on the UN sustainable development goals, the firm has announced.
The new strategy, which is called the UniInstitutional SDG Equities fund, invests in the universe of 1,200 companies, with 60 names making it to the final portfolio.
Some of the sectors the fund allocates to are water management, healthcare, renewable energies and green transport.
The portfolio manager of the strategy is Jörg Schneider, who has been with the firm since 2005 and currently manages the UniSector: BasicIndusties fund.
The research process of UniInstitutional SDG Equities consists of three stages: sustainability assessment, fundamental analysis and risk adjustment.
The companies that are part of the investment universe must have over 20% of their revenues related to SDGs. The average proportion of SDG-related revenue of the companies must be more than 50%.
‘This ensures that at least half of the fund’s assets are used to pursue the UN sustainable development goals,’ said Schneider.
The UN member states adopted the 2030 Agenda for Sustainable Development in 2015, which covers 17 goals on a variety of topics ranging from sustainable growth and urban development to responsible consumption and sustainable management of natural resources to preserve ecosystems.