Which Funds Launched in January?

Some 24 funds launched in the first month of the year, and almost half have a sustainable flavour 

Holly Black 3 February, 2021 | 10:01AM
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fund launches

Some 24 new funds were launched in the first month of the year, and almost half of them have a sustainable flavour, according to Morningstar Direct.

Invesco launched a range of five responsible investment funds in January – a low cost suite of multi-asset funds numbered one to five, investing according to different risk tolerance, their names indicating the level of volatility an investor can expect. The funds invest in ETFs selected according to a “responsible asset allocation framework”, which helps to keep costs down.

Fund Name  Morningstar Category
ASI Multi-Asset Climate Sols Other Allocation
Blenheim Diversified Alts Other Allocation
Blenheim Diversified Fixed Inc GBP Diversified Bond
Blenheim Diversified Property Property - Indirect Other
Blenheim Ethical Opps GBP Moderate Allocation
Bleinheim Overseas Equity Global Lg-Cap Blend Eq
Blenheim UK Equity UK Large-Cap Equity
Invesco Summit Rsp'ble 1 UK  GBP Cautious Allocation
Invesco Summit Rsp'ble 2 UK GBP Mod Cautious Alloc
Invesco Summit Rsp'ble 3 UK GBP Moderate Allocation
Invesco Summit Rsp'ble 4 UK GBP Mod Adventurs Alloc
Invesco Summit Rsp'ble 5 UK GBP Adventurous Alloc
Marlborough Conservative GBP Mod Cautious Alloc
Schroder Glbl S'tnable Grwth

Global Lg-Cap Blend Eq

SUTLCazenove GBP Cautious GBP Mod Cautious Alloc
SUTL Cazenove GBP Eq Focus GBP Adventurs Allocation
SUTLCazenove Sust'ble Gwth GBP Mod Adventrs Alloc
T. Rowe Price Rsp'ble UK Eq UK Large-Cap Equity
TB Guinness Asian Eq Inc Asia-Pacific Equity
The Optimal Accumulation Global g-Cap Blend Equity
TM P1 Sustainnable World GBP Mod Adventurs Alloc
VT Blackwood Keystone  Global Flexible Bond
VT Blackwood Prime GBP Mod Adventurs Alloc
VT Shaheen Global GBP Flexible Allocation
   


The most cautious option is Summit Responsible 1, which targets 15-45% of the volatility of the MSCI AC World index, up to Summit Responsible 5, which targets 75-105% of the index’s volatility. The ongoing charges on the funds are between 0.26% and 0.3%.
Elsewhere, Aberdeen Standard has launched a multi-asset fund alongside The Big Issue Group. The ASI Multi-Asset Climate Solutions fund invests in equities, bonds and real estate, focusing on companies whose products and services help to mitigate climate change. The fund is to be managed by Craig Mackenzie, ASI’s head of strategic allocation, and ASI will donate 20% of net revenue generated by the fund to the Big Issue Group.

Meanwhile, Schroders continues to expand its ESG offering with the launch of the Schroder Global Sustainable Growth fund, a concentrated portfolio of 30 to 50 companies. The fund will exclude stocks with material exposure to areas such as alcohol, tobacco and weapons and will focus on promoting more sustainable business practices and changing corporate behaviour.

ESG Funds Boom

It is, perhaps, little surprise that sustainable funds account for so many new launches. The latest Sustainable Funds Landscape report from Morningstar shows that investor interest in ESG funds picked up significantly in 2020. An incredible €233 billion was invested into ESG funds in Europe in the year, almost double the €126 billion of inflows in 2019. And a record 505 new ESG funds were launched, with more than 250 existing conventional funds repurpose to sustainable mandates. The amount invested in European sustainable funds has now hit €1.1 trillion.

Morningstar director of sustainability Hortense Bioy says: “Asset managers are responding to the increased demand for products that mitigate ESG risks, align with investors’ values, or target a sustainability theme.

"This trend is set to continue, driven by not only the growing investor interest in ESG issues, especially climate change, partly accelerated by the Covid-19 pandemic, but also an ambitious regulatory agenda that will bring confidence to this space by limiting the risk of greenwashing."

Away from the world of sustainable investing, two cautious funds were launched for investors: SUTL Cazenove GBP Cautious and Marlborough Conservative. Interest in less risky options could indicate that investors are taking stock after an unprecedented year and adding “insurance policies” into their portfolios in the event of another sell-off.

 

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk