London, 3 August 2020: Fulcrum announces the launch of the Fulcrum Climate Change Fund (FCC). The Fund is a diversified, global equity fund and is aligned with the Paris Agreement’s target of keeping the global temperature rise this century below 2 degrees Celsius. Launch AUM is expected to be £70 million.
This is one of the first active global equity funds to be climate-aligned (i.e. committed to having a portfolio temperature below 2 degrees as per the Paris Agreement target) and is designed to provide investors with diversified exposure to the global equity market, whilst maintaining a weighted average portfolio temperature of below 2 degrees.
The Fund is expected to hold between 150-200 stocks invested across 25 themes, with no company in the portfolio having a higher temperature than 2.5 degrees.
Climate change has been a core investment theme in the Fulcrum Diversified Absolute Return Fund and will be strengthened with the launch of this stand-alone fund.
Fulcrum has worked with environmental transition experts, Iceberg Data Lab, to create a product that is designed to be in line with science-based international best practice. The Fund is also a product of collaboration with Arvella Investments which, after an extensive yet fruitless search for an established diversified equity fund aligned with the Paris Agreement, turned to Fulcrum for a solution.
The Paris Agreement highlights the importance of making financial flows consistent with low-carbon pathways. The Fund is designed to contribute to the re-allocation of capital by maintaining a portfolio temperature of below 2-degrees. This is achieved by investing in companies that are “on-track” to meet the Paris Agreement’s temperature target. Fulcrum will also engage with companies to encourage further decarbonisation, climate-related disclosure and climate target setting. If all companies adopted their sector’s existing best practice, the world would be much closer to mitigating global warming.
The Fund will be offered as a LUX SICAV – UCITS.
For professional investors only.