Van Lanschot Kempen has launched two new sustainable equity funds under its BestSelect umbrella. The two funds have a distinct objective: to invest in companies that supply products and service that have a significant impact on people and the planet. With the introduction of these funds, Van Lanschot Kempen has taken a further step towards strengthening the sustainability profile of its portfolios for both its institutional and its private banking clients.
A number of pension funds have already committed to investing in these two sustainable BestSelect funds. The aim here is to invest in a concentrated equity portfolio that includes companies that create positive impact within the climate and good health themes. Due to their focus on so-called pure play companies with products and/or services focused on offering specific solutions, the funds have an overweight position in small and medium-sized stock market-listed companies. Consequently, the overlap with broad equity indices is limited. This also contributes to further diversification.
The funds are managed by Kempen Capital Management and fall under the fund umbrella of BestSelect. The investment policy for the funds is implemented by two external fund managers. This allows Kempen, as manager of BestSelect, to exert more control over the investment guidelines and (sustainable) frameworks within the funds than is the case when investing in a standard investment fund of external managers.
Wilse Graveland, Head of Fiduciary Management & Institutional Solutions: ‘With these two sustainable funds, we offer our clients a solution for achieving targeted impact through listed equities. For the two funds, the mandate objectives include both general and minimum requirements aimed at sustainable development. With both managers, clear ESG reporting requirements have been agreed. Integrated Socially Responsible Investment-communication is also provided for, allowing investment cases to be shares with participants.
Simon Oosterhof, Senior Portfolio Manager: ‘The external fund managers that will be responsible for the day-to-day investments of the funds are Hermes and M&G Investments. Although this type of active thematic equity strategy is relatively new, both managers have built up a strong track record in this area in the past three years. Each manager has its own specific investment process with a strong focus on the positive impact of the companies that they (potentially) invest in.’
Both portfolios focus on positive impact with respect to various Sustainable Development Goals (SDG), with a particular focus on SDG 3 (Good Health and Well-Being), SDG 7 (Affordable and Clean Energy) and SDG 11 (Sustainable Cities and Communities).