Aberdeen Standard Investments is to launch an investment trust to invest in unquoted investments that meet its ethical, sustainable and governance (ESG) targets.
The Global Sustainability Trust will be managed by Roger Pim, global head of private market product strategy at the firm, and others.
The fund is targeting an annual return of between 6 and 8 per cent, the bulk of which it expects will come from capital growth from the underlying investments, rather than from income.
Mr Pim said the private market represents an investment opportunity because it is neglected by investors as many funds are unable to invest in this area.
He said: "Our team's experience offers access to attractive, unlisted sustainable and impact investments.
"In addition the investment trust structure offers private investors access to a diversified portfolio of opportunities not typically available to them.
"Primarily consisting of private market investments across private equity, infrastructure, real estate, natural resources and private credit, these aim to have a positive environmental and social impact, while targeting attractive financial returns for shareholders."
Alan Steel, who runs Alan Steel Asset Management in Linlithgow, said: "It should appeal to more risk averse income seeking investors.
"Not a bad time to launch too, given the current fear and disquiet among long-term investors , after a near decade long bull run."
david.thorpe@ft.com
