Russell Investments has launched a low-carbon global shares fund that utilises the firm’s proprietary ‘decarbonisation’ investment strategy.
The new Russell Investments low-carbon fund considers carbon, green energy and environmental, social and governance (ESG) factors when making portfolio decisions.
The strategy commits to reducing its exposure to carbon footprint and fossil fuels by 50 per cent of its MSCI ACWI benchmark.
Initial clients investing in the fund include GuildSuper, Child Care Super and GuildPension.
The fund, which utilises a rules-based approach, is designed to reduce the amount of carbon in investors' portfolios without materially affecting performance, according to a statement.
Russell Investments portfolio manager James Harwood said the firm took a "wide-lens" approach when constructing the fund.
"[We wanted to] substantially reduce the portfolio’s total exposure to carbon footprint and fossil fuel reserves and simultaneously avoid unintended consequences
in terms of maintaining the integrity of the overarching asset class opportunity in developed and emerging markets," Mr Harwood said.
"In line with Russell Investments’ active and robust sustainability research agenda, this fund’s strategy will be continually updated to reflect developing trends in the transition to a low carbon economy.
"In other words, this new fund’s strategy will offer interested clients a long-term solution, benefiting over time from our cutting-edge research, which will ensure it adapts to reflect changing market conditions within a risk controlled framework."
BlackRock’s latest client survey has found that climate-related risks are now the top sustainability concern for the vast majority of its ...