Kames Capital is adding to its £2.3bn in specialist ethical funds with the launch of its Global Sustainable Equity Fund announced for later this month.
The fund will be managed by Craig Bonthron and Neil Goddin and supported by Ryan Smith, head of governance and ethical research.
The high-conviction fund will invest in 35 to 45 stocks.
Kames has a proprietary sustainability screen that blends ESG considerations with negative screens for certain sectors or issues, such as tobacco.
It added that it would mix sustainability leaders with companies that were improving in the space, saying it felt there was a strong correlation between improving sustainability performance and share price performance.
Net of annual management fees of 0.75 per cent, the fund seeks to outperform the MSCI All Country World Index Total Return index by 3 per cent over a rolling 36-month period.
Kames’ head of equities Stephen Adams described the investment firm as one of the UK’s leading providers in the sustainability market.
“The launch of the Kames Global Sustainable Equity Fund builds on this successful franchise by leveraging our existing capabilities in this area with the expertise we have in the global equity market,” Adams said. “By combining these two strengths we can broaden our range into the wider sustainability market.”
The fund will be launched in Dublin and passported into Kames’ key European markets, including the UK, subject to regulatory approval.