Leading fund manager the Premier Group has launched the Premier Socially Responsible Investment Fund (SRIF), which it says will allow investors to diversify their portfolio while their money has a beneficial impact on the environment.
The fund, which is targeting UK retail investors, is structured as a fund of alternative investment funds. It invests in funds that hold assets in global companies from various sectors of the green economy, including renewable energy firms, recycling companies and sustainable food producers.
Premier says the fund boasts some unique investment options, such as the Eco Resources fund, which invests in sustainable bamboo plantations, growing versatile resources while restoring deforested land.
“With critical environmental challenges faced by society such as waste mountains, landfill limitations, pollution, resource scarcity, population growth and environmental degradation, we believe this is an exciting opportunity to make a lasting investment contribution and significant financial return”, said Premier director Jamie Sutton.
The SRIF becomes Premier’s latest sustainable or ethical option, joining its New Earth fund, which invests in UK recycling facilities, and its Ethical fund, which screens companies out that operate in sectors including tobacco and gambling.
Sutton added, “Premier has been involved in the environmentally friendly sector for many years and has witnessed at first hand clients growing appetite for investments that can have a positive social impact.
“Now we are able to reach a wider audience as SRIF provides an opportunity for investors to do this from a much lower amount.”
A study by Moneyfacts found that the average ethical fund delivered returns of 24% over a 12-month period, compared with the 18% growth displayed by the average non-ethical fund.
In an interview with Blue & Green Tomorrow in April, the president and CEO of the US-based firm Pax World Management Joe Keefe argued that the misconception that considering sustainability means sacrificing financial performance is “finally withering away”.
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