The new Virgin Money Climate Change Fund is launched this week. The fund, which Fund Strategy reported in October, will concentrate on high-performing environmentally focused companies across all industry sectors.
The portfolio is managed by GLG Partners. About 75% of the weighting is in the GLG European Equity Funds, whose assets are put through a “green filter” so that investment can be directed to companies with a lighter than average environmental footprint.
Of the rest of the fund, 10-15% is invested in solution adopter companies that are world leaders in adopting environmentally friendly policies. The final 10% is allocated for solution providers, which own the intellectual property rights to environmental solutions.
The fund will be open to minimum investments of £50 a month or a £500 lump sum. There is a 1.75% annual management charge but no initial charge. A 20% performance bonus will be paid if the fund beats its high water mark – its previous best performance – as well as the Bank of England base rate.