There is no bigger macro and socio-economic challenge than mitigating the dramatic and imminent effects of climate change.
Following more than a year of planning and design, we launched the Fulcrum Climate Change Fund (FCC) at the beginning of August this year.
We expect the portfolio to benefit from a structural alpha tailwind that could last for many years as climate risk and alignment is priced into global equity markets. This is especially true in a post-Covid world, which has resulted in acceleration in green policy initiatives. As carbon pricing begins to take hold and more asset managers and investors pay attention to climate change, we believe that climate aligned companies will benefit from both valuation expansion and profit growth. Our solution thoughtfully balances climate-alignment with expected returns and diversification benefits. In summary, it is committed to a weighted average portfolio temperature that is below 2°C – in line with the Paris Agreement; and is highly diversified across sectors and regions, thereby behaving much like the broader equity market.