Long-term secular trends such as decarbonisation, urbanisation, longevity and technological disruption are driving structural change in the global economy, Solactive writes.
To harness these movements, Ireland’s largest asset manager, Irish Life Investment Managers (ILIM), has launched the ILIM Global Thematic Equity Fund, which passively tracks the Solactive ILIM Global Thematic Equity Index. Solactive writes that, designated Article 8 under the Sustainable Financial Disclosure Regulations, the fund has strong ESG integration, including the targeting of specified ESG metric improvements. It invests in small, mid and large capitalisation stocks in developed and emerging markets.
Colin Cunningham, Director of Global Institutional Distribution at ILIM, says: “With this innovative solution, we will continue to meet our clients investment needs, providing them with a wide breadth of investment opportunities within a robust risk-management framework. This will enable our clients gain exposure to the trends that will shape the global economy in the coming years and decades. We are excited to extend our partnership with Solactive and bring this solution to our clients.”
The Solactive ILIM Global Thematic Equity Index was built using Solactive’s proprietary machine learning system, ARTIS. This uses advanced algorithms to analyse large volumes of public documents evaluating companies’ relevancy to various themes or topics. The constituents of the index are companies aligned with themes in the areas of technological innovation, environmental opportunities, and our future way of life.
The Solactive ILIM Global Thematic Equity Index gives investors a balanced exposure to a diversified cross section of long-term themes, while managing key portfolio risks by controlling regional, sector, factor, and valuation weights versus a broad market benchmark. This provides investors with the possibility to capture long-term growth opportunities while controlling for secondary risk exposures.
Timo Pfeiffer, CMO of Solactive, says: “We are very pleased to partner with ILIM and develop this solution together, which bears testament to Solactive’s core culture of flexibility and tailoring products according to the needs of our clients and to the changes that are in place in the world. The Solactive ILIM Global Thematic Equity Index reflects long-term evolutions in society, economics and the environment. It provides access to current and future investment themes driven by the key tendencies that are likely to significantly impact our daily lives and fuel business growth for corporations.”