Germany – German asset manager Union Investment has launched a fund focusing on the United Nations Sustainable Development Goals (SDG). The UniInstitutional SDG Equities fund, which is aimed at institutional investors, invests in global company equities from SDG-related business sectors.
Screening stocks from a universe of 1200 companies, the concentrated portfolio includes about 60 holdings from sectors such as water management, healthcare, renewable energy and green transport.
According to portfolio manager Jörg Schneider, companies are only eligible for the fund’s investment if over 20 per cent of their consolidated revenue is relevant to the SDGs. The average proportion of SDG-related revenue of the companies in the fund must be more than 50 per cent. “This ensures that at least half of the fund’s assets are used to pursue the UN sustainable development goals,” said Schneider.
The United Nations Sustainable Development Goals were set up by the United Nations in 2015 as part of its 2030 Agenda. They include 17 key goals: Amongst them are tackling hunger, climate change, gender inequalities as well as access to clean sanitation and education.
Sustainable Development Goals (Image credit: un.org)