Schroders has added two sustainable funds to its UK range as it looks to capitalise on growing demand for responsible investments.
The Schroder Global Sustainable Growth (GSG) fund and the Schroder Global Energy Transition (GET) fund will now sit alongside the company’s Global Cities fund and BSC Social Impact trust launched in December.
Both Luxembourg-based funds have strong track records, with the $1.3bn (£950m) GSG fund, managed by AAA-rated duo Katherine Davidson (pictured) and Charles Somers, having returned 122.6% over five years versus a sector average of 110.8%.
The $1.1bn GET fund, run by Citywire + rated Mark Lacey, is up 114% since it launched in July 2019.
The fund seeks out investment opportunities across the clean energy investment universe.
Lacey said: ‘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.’
Davidson (pictured) 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.
‘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.’