BMO Global Asset Management has launched a new fund, seeded by UBS Global Wealth Management, through the Swiss bank’s sustainable investing initiative.
The BMO SDG Engagement Global Equity Fund aims to invest in 40 to 60 global small and mid-cap equities, which BMO’s investment team considers having scope for driving improvement in the UN’s 17 Sustainable Development Goals.
The company said it plans to align returns with the SDGs through making “targeted” and “impact-focussed” engagements with the companies in which it invests. The fund is to be managed by Jamie Jenkins in London, who also runs BMO’s Responsible Global Equity strategy.
“Having been at the vanguard of ethical investing in Europe, launching the first retail ethical fund in 1984, responsible investment is in BMO’s DNA,” said David Logan, head of distribution at BMO Global Asset Management.
“The BMO SDG Engagement Global Equity Fund is truly representative of what investors are asking for today and demonstrates the developments we have seen in this area over the last 35 years.”
Logan added that the company’s responsible investment team will provide further analysis, engagement and support for voting at investee company meetings.
“In our view, responsibly engaging with public companies and changing their behaviour for the better is one of the most exciting new areas of impact investing,” added Mark Haefele, chief investment officer at UBS Global Wealth Management.
“It also forms a core part of our 100% sustainable cross-asset portfolio for private clients. By improving their social and environmental performance, firms can mitigate risks, support their brands, and take advantage of sustainable business opportunities.”