ASI launches trio of climate funds

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ASI launches trio of climate funds
Chris Ratcliffe/Bloomberg

Aberdeen Standard Investments has launched a range of climate funds to support the shift towards net zero global emissions.

The ASI Climate Range, which will adhere to article 9 of the EU’s sustainable finance disclosure regulations (SFDR), comprises three funds.

These are the Aberdeen Standard SICAV I - Global Climate and Environment Equity fund, which will invest in firms that “provide solutions to the most carbon intensive sectors of the economy”.

The second fund is the Aberdeen Standard SICAV I - Climate Transition Bond Fund, which invests in firms with “credible and ambitious” transition plans from high emission sectors. The fund will also invest in projects that tackle the physical impacts of climate change.

The third is the Aberdeen Standard SICAV II - Multi-Asset Climate Opportunities Fund, which invests in climate solutions such as clean energy, electric vehicles and smart working technologies across equities, bonds and renewable infrastructure. 

Eva Cairns, head of climate change strategy at Aberdeen Standard Investments, said: “To have real world impact, we need to look to the future and invest in the solution providers and companies that will help make this transition to net zero happen.

“Our approach to climate scenario analysis is motivated by the view that a rigorous, forward looking and transparent methodology is essential for embedding climate risks and opportunities into our investment decision making and delivering superior outcomes for our clients. 

“We believe that our bespoke approach represents a significant advancement in the field of climate-scenario analysis, giving us greater confidence in the results and their applicability to real-world investing.”

The ASI Climate Range will allocate a substantial share of capital to climate solutions. As a result, all three funds have high EU Taxonomy scores.

ASI has developed a climate scenario analysis tool in collaboration with the Aberdeen Standard Research Institute, which identifies the companies that the firm believes will lead through the energy transition period.

Meanwhile the Financial Conduct Authority has warned on the "poor-quality" of many ESG fund applications.

In a letter to the chairmen of authorised fund managers this week (July 19), Nick Miller, head of the FCA’s asset management supervision department, said the regulator had seen a high volume of applications for the authorisation of funds with an ESG focus but he warned on the "number of poor-quality fund applications we have seen and the impact this may have on consumers". 

The watchdog has created a set of guiding principles for fund managers, to be used pre and post-authorisation, to help AFMs ensure that they are complying with existing ESG requirements.