The Co-operative Investments has launched a unit trust that will target the investment opportunities emerging from a shift in attitudes towards sustainable business practices.
The Co-operative Investments has launched a unit trust that will target the investment opportunities emerging from a shift in attitudes towards sustainable business practices.
The new Sustainable Diversified Trust will invest in companies well-placed to benefit from fundamental global changes including: the economic importance of emerging countries such as India and China; urban regeneration; the global ageing population; and the impact of climate change.
These investment themes, once regarded as the domain of ethical funds, are increasingly being embraced by the mainstream investment community due to their potential for generating significant returns.
The new fund will be an actively managed multi-asset fund that offers retail investors long-term capital growth and will sit within the IMA Cautious Managed Sector. It is being launched in response to growing investor demand for lower-risk investments and evidence that the financial crisis has led to increased willingness from investors to invest in sustainable businesses that behave in a responsible way.
Zack Hocking, head of investments at The Co-operative Investments, says: ‘The world is changing and it is throwing up some highly attractive opportunities for long-term investors. The need to tackle ageing populations, climate change and global power shortage will see significant investment in those areas in coming years.’
The trust will hold a mix of equities, bonds, cash and property – reducing the risk and volatility experienced with pure equity funds.
Sustainable Diversified is the first of several new funds planned by The Co-operative Investments that will see a broadening of the sustainable investment product proposition and the development of a suite of funds that will complement the Sustainable Leaders Trust.
To mark the launch of the new fund, anyone investing over GBP10,000 into the Sustainable Diversified Trust before 28 August 2009 will receive two per cent discount from the initial charge, usually five per cent.
