Sustainable Investing  

Robeco launches ethical fund

Robeco launches ethical fund

Dutch asset management firm Robeco has launched a sustainable investment fund, which aims to provide equity-like returns but with lower risk.

The Robeco QI Global Sustainable Conservative Equities fund applies strict criteria based on ethical standards, as well as high environmental, social and governance (ESG) scores. 

It aims to have a far more sustainable profile than its reference index, the MSCI World All Country.

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Managed by the Robeco Conservative equities team in Rotterdam, which currently runs €16.9bn (£14.2bn) assets under management, the new launch marks a decade since the firm unveiled its first conservative equity strategy.

Robeco worked closely with RobecoSAM, an investment specialist focused on sustainable investing, to develop the new fund.

Daniel Wild, head of sustainable investing research at RobecoSAM, said: “Marrying the low-risk anomaly with ‘smart ESG’ scores makes perfect sense."

The Luxembourg-domiciled fund has a minimum investment of one share.

Scott Gallacher, director and chartered financial planner at Rowley Turton, said: “Ethical funds are increasingly popular as people become concerned about these matters, and this fund would appear to appeal to these people. 

“However I am sceptical about delivering equity returns at lower risk, as in my experience the underlying true equity risk has a habit of reappearing at the worst possible time.”

katherine.denham@ft.com