Schroders Increases Accessibility of Global Sustainable Food and Water Fund to UK Investors
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Schroders is announcing the UK onshoring of the Global Sustainable Food and Water Fund. Initially launched in October 2021, this latest move looks to increase the level of accessibility to UK investors.
The fund is managed by Mark Lacey, Felix Odey and Alex Monk, and aims to provide capital growth by investing in equities of companies worldwide which help the transition towards the sustainable provision of food and water.
As a thematic value proposition, the fund targets emerging technologies and strategic industries integral to the changing of food and water systems. The team seek opportunities across key value chains, leveraging the strength of Schroders’ fundamental research resources and expertise on sustainability and stewardship.
A combination of bottom-up and top-down inputs are used alongside a high-conviction unconstrained approach that allocates to between 35-60 stocks. All companies within the investment universe are aligned with solving at least one of the five key sustainability areas – climate change & greenhouse gas emissions, biodiversity, pollution & waste, water management and health and nutrition.
Between its sustainability objectives and key investment areas, the offshore Fund is classified under the EU Sustainable Finance Disclosure Regulation as Article 9. The fund forms a part of the Schroders Global Transformation Range, a suite of funds giving investors long-term exposure to the most powerful and persistent themes shaping the world’s future.
See related article: Schroders Launches Option for Clients to Offset Carbon Emissions
Mark Lacey, Head of Global Resource Equities and Portfolio Manager of the SUTL Sustainable Food and Water, commented:
“Our current food and water system is unsustainable and will need to undergo a significant transformation to cope with the increasing pressures of a growing population while simultaneously meeting climate and biodiversity needs.
“The growth opportunity within this space remains largely underappreciated and current investment rates are predicted to increase substantially across the different value chains by 2050. This therefore presents an incredible opportunity for investors and we are pleased that the fund is now more widely available so that more can access the possibilities within this fascinating area of ongoing change and development.”
Yashica Reddy, Investment Director, SUTL Sustainable Food and Water added:
“Our food and water system will be exposed to unprecedented challenges over the next 30 years and will undergo huge structural changes as we transition to a more sustainable food and water system. Regulation, consumer behaviour, and new technology are changing fast, and are now starting to impact the long overdue change that is required to make the whole system less carbon intensive, wasteful and polluting, whilst improving biodiversity and encouraging healthier diets globally. It is estimated that this change will require around $30trillion of capital reallocation by 2050, creating significant opportunities for investors in the wide array of companies and subsectors within the global food and water system.This fund offers a unique approach to building a forward-looking sustainable portfolio by offering focused exposure to the best performing companies in the space as the world looks to new and exciting technology and methods of transition. We are excited by the companies on offer and the ever growing potential this fund has to offer actively managed exposure on behalf of our investors.”