La Française Inflection Point launches Carbon Zero fund as investors gather for Climate Week in Paris

Week of events in France in advance of COP21.

La Française Inflection Point (LFIP), the London-Paris based sustainable fund manager, is to launch what it is calling a Carbon Zero fund as investors gather in France for this week’s Climate Week in Paris, the precursor to the COP21 event in Paris in December.
LFIP is the fund management joint venture between Inflection Point Capital Management, the fund manager launched by Matthew Kiernan in 2009, and La Française, the French investment group.
The move comes as a number of funds houses and index providers are developing their low carbon product ranges as the debate around fossil fuel investment exposure intensifies.
The new Carbon Zero fund groups together 50-60 companies in three ‘buckets’ that the manager says will net out the overall carbon exposure of the fund.Ariane Mahler, Managing Director at La Française Group will be the lead portfolio manager for the fund, which is expected to launch on June 15 with €15m of in-house seed financing. Mahler already runs LFIP’s 50-name global Strategically Aware Investing equities fund, which has recently been divvied up into additional Euro, Europe and Emerging Markets fund classes. Mahler works alongside Laurent Jacquier-Laforge, LFIP’s Paris-based Chief Investment Officer. The manager says a third of the portfolio will be mainstream companies deemed to be best-in-class in terms of their carbon efficiency. Another third will be companies that have a significant portion of their business in low carbon solutions. The last third of the portfolio constituents will be pure play environmental companies. LFIP says the carbon reductions of the last third of the companies and the business lines in the second bucket will be calculated to neutralise the carbon emissions of the rest of the portfolio. The fund will use data carbon data from MSCI ESG Research.