Responsible Funds, Sept. 6: UBS, Brunel, Industriens, Hammersmith & Fulham, Enel SDG bond, Foresight

The latest responsible funds news

UBS Asset Management has reached final close on its second clean energy infrastructure fund. UBS Clean Energy Infrastructure Switzerland 2 raised around CHF 472m (€436m) from more than 40 institutional investors, including insurers and public and private pension funds. The fund is a joint initiative between UBS AM, the independent Swiss investment manager Fontavis AG and Swiss Mobiliar, which provides the fund with insurance-related advisory services.

UBS has also raised $225m from private clients for KKR’s Global Impact Fund, which invests in businesses contributing to one or more of the UN Sustainable Development Goals. In 2017, UBS committed to raising $5bn in impact investments related to the goals over the next five years as part of a plan “to mobilise private wealth for public good”. It has since raised investment across various asset classes and types of product, including its “100% sustainable cross-asset portfolio”. Link

What are described as socially responsible investors were significant participants in a new €1.4bn Sustainable Development Goals-linked bond from Italian energy company Enel. Enel Finance International NV, the Group’s Dutch-registered finance company, said the bond was oversubscribed by almost three times, “with total orders of approximately $4bn and the significant participation of Socially Responsible Investors (“SRI”) allowing the Enel Group to continue to diversify its investor base”.

Brunel Pension Partnership is inviting expressions of interest from managers with “strong evidence of ESG integration” to run its £365m Global Small Cap portfolio. The benchmark for the portfolio is the MSCI Small Cap World index, with the pension pool allowing for an off-benchmark allocation to emerging markets or micro-caps of up to 30%. The capital will be allocated between two to three selected managers, with the sub-fund, scheduled for formal launch in the second quarter of next year, to be delivered through the ACS platform. Both fundamental and quantitative managers will be considered; regionally focused mandates will not. The deadline for submissions is September 20.Denmark’s Industriens Pension has committed DKK1.5bn (€200m) to a sustainable equity fund run by LGT, asset manager owned by the Princely House of Liechtenstein. The LGT Sustainable Equity Global fund focuses on companies that are financially strong and particularly sustainable, according to DKK172bn labour-market fund Industriens. “Link”:HTTPS://WWW.INDUSTRIENSPENSION.DK/DA/OMIP/NYHEDER/NYHEDER-2019/LGT (Danish)

The £1bn (€1.1bn) Hammersmith & Fulham Pension Fund in London, part of the Local Government Pension Scheme, is reportedly preparing to switch around £125m from a UK equity mandate run by Majedie to a low-carbon tracker fund run by Legal & General Investment Management. IPE was quoting from council documents.

Amundi has launched a multi-asset sustainable fund, according to media reports, which combines diversified investing with an ESG approach. The universe of the Amundi Funds Multi-Asset Sustainable Future allows for investing across global equities (up to 40% of portfolio allocation) and a broad range of fixed income assets, aiming for long term returns.

Foresight Group has launched its fifth regional private equity fund, which will focus on SME companies in the East of England. Cornerstoned by the Cambridgeshire Pension Fund, the fund targets long term returns for investors and will allocation up to £5m in companies across a range of sectors.

Stonepeak Infrastructure Partners – formerly Blackstone’s infrastructure team – is reportedly considering raising its first dedicated renewables fund. The fund would target between $750m and $1.24 in commitments and focus on assets in Asia and North America.

Real estate benchmark provider Global Property Research (GPR) has launched three index series with ESG overlays. The GPR Europe ESG + Index, GPR Europe ex-UK ESG + Index, and GPR Eurozone ESG + Index contain real estate companies – the 50 most liquid constituents in the relevant region – with ESG overlays provided by GRESB.

Impact investment group Oxygen House has invested £20m in Sparx, a socially focused learning technology company based in Exeter in western England. Oxygen House previously made an investment of £30m, which Sparx used to develop and trial the technology.