Friday Funds: M&G backs two CCS developers

The latest developments in ESG-related funds

M&G has made an undisclosed investment in two carbon capture and storage (CCS) companies through its £143bn Prudential With-Profits Fund. UK-based CCS and hydrogen developer Storegga Geotechnologies and US industrials CCS firm Summit Carbon Solutions will be able to sequester 30m tonnes of CO2 a year once their infrastructure is fully developed, according to M&G. 

UK pension pool London CIV has raised £247m in its second round of fundraising for its renewable infrastructure fund, securing commitments from five of its local authority client funds. The vehicle now has £682.5m in assets, to be invested in renewable energy generation, transmission, distribution and enabling assets.

Aberdeen Standard Investments has launched a range of funds that aim to support the transition to Net Zero. The range of funds includes a climate transition bond fund, which invests in companies from carbon-heavy sectors with credible and ambitious transition plans, and “outstanding” companies from other sectors.  

Rize ETF has launched an environmental sustainability exchange-traded fund providing exposure to the 100 “most impactful companies” developing solutions to climate and environmental challenges. Constituents are selected based on the six environmental objectives of the EU’s green taxonomy.

There was a 29% rise in assets investment in sustainable funds in Australia in the first half of 2021, bringing the total to €22.4bn – more than 10% of overall national AUM, according to figures from Austrian investment firms association VÖIG. Multi-asset funds made up just under half of the assets in sustainable funds, followed by fixed-income and equity funds.

Aviva Investors has launched a climate transition fund for real assets, with £425m seed investment from an undisclosed source. The fund will focus on real estate, infrastructure and forestry assets in Europe, targeting a net annual return of 8% per annum and target net zero by 2040.

Timberland Investment Resources Europe has closed its second forestry fund with $200m investment from institutional investors, bringing its total assets under management to $1.65bn.

Lyxor Asset Management and Bridgewater Associates have announced the launch of the Lyxor/Bridgewater All Weather Sustainability Fund – a multi-asset strategy investing in public market assets aligned to the UN Sustainable Development Goals.

Green fintech firm iClima launched its first two listed US ETFs. Its Global Decarbonisation Transition Leaders fund invests in companies generating revenue from climate solutions like green energy and transport, water and waste improvements and companies with sustainable products. Its Distributed Renewable Energy Transition Leaders funds offers exposure to firms involved in power sector decentralisation, energy digitalisation and energy decarbonisation.

The Athens Stock Exchange will launch Greece’s first ESG equity index. The National and Kapodistrian University of Athens assisted in the creation of the index, which is expected to include 30 firms, eventually rising to 60. Expected participants include Mytilineos, Hellenic Petroleum and Terna Energy, as well as four banks.