Friday Funds: Apple awards $200m mandate to CAM for natural capital fund

The latest developments in ESG-related funds: Lloyd’s Investment Platform launches private impact fund; Polestar announces new investors for European circular debt fund.

Apple has awarded $200 million to Climate Asset Management (CAM) to expand its natural capital fund. Apple first launched its $200 million Restore Fund in April 2021, with Goldman Sachs managing the vehicle and Conservation International participating as co-investor. The new fund, which is an expansion of the Restore Fund, will target natural capital projects in global developed and developing economies, with the objective of generating carbon credits from high-quality carbon removals. It will aim to remove one million metric tonnes of carbon dioxide from the atmosphere per year at its peak.

Lloyd’s Investment Platform has launched a private impact fund with an initial £250 million allocation ($313 million; €283 million) for sustainability-focused assets. The fund will invest globally across private equity, infrastructure, natural capital and real estate, targeting climate mitigation, climate adaption, circular economy and social inclusion. Lloyd’s has appointed Schroders Capital as the fund’s portfolio manager.

Polestar Capital has announced the participation of four new investors in Europe’s biggest circular debt fund. They include Dutch state impact investor Invest-NL and insurers Onderlinge ‘s-Gravenhage and De Hoop. The Province of Limburg has made its investment decision but is still in the process of formalising its participation. The Circular Debt Fund, which has Dutch pension fund Detailhandel as its anchor investor with a €100 million allocation, will grow to €187 million following the additional investments.

DWS’s exchange-traded funds business Xtrackers has launched the largest ever US ETF with a new climate action fund backed by a $2 million investment by Finnish pension insurer Ilmarinen. The MSCI USA Climate Action Equity ETF is designed for investors seeking exposure to large and mid-cap companies leading on the climate transition. The index tracks the MSCI USA Climate Action Index.

Applications for the FNG-seal – the quality standard for sustainable investment in German-speaking countries – have opened for the ninth time for 2024. Changes to the label’s criteria include reducing the revenue threshold for companies that base their electricity generation on coal from 10 percent to 5 percent. Last August, it became mandatory to ask investors about their sustainability preferences. The FNG-seal has given sustainable funds credibility amid growing concerns about greenwashing from investors. Applications close on 7 July.