Schroder Investment Management, Launches 'Schroder Global Climate Change Fund'

[Asia Economy Reporter Minji Lee] Schroder Investment Management announced on the 14th the launch of the ‘Schroder Global Climate Change Fund,’ which seeks long-term market outperformance by considering companies' climate change crisis response strategies.

The newly introduced fund is Schroder’s second ESG fund launched domestically and primarily invests in companies that mitigate or adapt to the global climate change crisis. The themes directly or indirectly related to climate change response are classified into five categories: ▲Clean Energy ▲Energy Efficiency ▲Eco-friendly Resources ▲Low Carbon Leaders ▲Sustainable Transportation, and the fund invests in companies suitable for these categories.

This fund is a feeder fund investing in the Schroder Group’s global climate change equity fund (GCC). The Schroder Global Climate Change Equity Fund, first launched in the UK in 2007, has recently achieved high market outperformance over the medium to long term for more than a year. In April, it also received the highest fund rating (5-Star) from the global fund rating agency ‘Morningstar.’

The key factor behind the Schroder Group’s strong performance in the global climate change fund is its proprietary ‘Climate Change Investment Universe.’ Schroder identifies investment companies based on four criteria: ▲Carbon Cost Assessment ▲Regulation and Corporate Goal Analysis ▲Green Business Strategy ▲Market Responsiveness, and manages the stock portfolio through continuous monitoring.

A representative from Schroder Investment Management stated, “Since the COVID-19 pandemic, the world has recognized the seriousness of climate change and has prepared various countermeasures, including government funds, but these have limitations. Schroder strives to discover various companies contributing to climate change and to provide optimal portfolios and attractive excess return opportunities to investors seeking new revenue channels based on awareness of these issues.”

Meanwhile, the Schroder Global Climate Change Fund is available for subscription at KB Kookmin Bank.