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Bringing three significant global trends of increased energy efficiency, decarbonisation of power generation, and the electrification of energy use into its investment process, Schroders has launched the Global Energy Transition Fund.
The UK-based investment firm said that the fund is a response to demand for more actively managed exposure to the sector. Specifically, the long-only fund will identify opportunities across clean energy-focused investments that include renewable power production and energy equipment, transmission and distribution, energy storage, smart grid technologies and electric vehicle charging, the firm said, and will exclude companies that are exposed to nuclear and fossil fuels.
The fund will be managed by Schroders’ commodities and resources investment team who will aim to allocate between 30 and 50 stocks into the portfolio.
“The energy transition opportunity is vast with around $120 trillion of investment into the sector required by 2050 to meet globally agreed climate goals. This tremendous investment, coupled with growing consumer demand for clean technologies, is creating strong real earnings growth opportunities for companies in this space, which in turn we hope will benefit our clients, fund manager Mark Lacey said.