The new funds, under the umbrella of Mediolanum Best Brands, are the Mediolanum Green Building Evolution Fund and Mediolanum Global Sustainable Bond Fund. They are both Article 9 funds under the Sustainable Finance Disclosure Regulation (SFDR). As such, these two new funds add to MIFL's range of investment solutions that focus on ESG. See more commentary about the firm here.     

Mediolanum Best Brands Green Building Evolution is an equity fund that aims to achieve long-term capital appreciation by investing in companies that contribute to a sustainable transition in the building sector.

Construction is one of the sectors that has the biggest impact on CO2 emissions, accounting for almost 40 per cent of global emissions related to energy use, the firm said in a statement. In addition, the sector also uses a significant amount of water and uses other resources inefficiently. The European Green Deal has therefore dedicated between €200 ($217) to €300 billion in investment per annum to guide this transition.

Firms in the construction sector need sustainability-focused investment strategies that can help them adapt to these changes and follow related regulatory developments, as well as reduce the risk of their assets becoming outdated, a risk that depends on changes in regulations and social dynamics.

The Mediolanum Best Brands Green Building Evolution will invest in a mix of companies within the climate-neutral green built sector (or green building sector), including those involved in commercial and industrial property ownership; the development, management and advancement of green building technologies; and those involved in chain of construction activities.

As part of MIFL’s multi-manager approach, the fund will be initially delegated to Schroders and Robeco.

The Mediolanum Best Brands Global Sustainable Bond Fund is a fixed income fund that aims to achieve long-term capital appreciation through sustainable investment.

The fund also aims to benefit from the higher yield levels that are now available in the market and will invest in green, social and sustainability (GSS) bonds: Green bonds fund projects that relate to the environment, such as those on renewable energy and clean public transport, while social bonds support social aims such as the creation of affordable housing, sustainable infrastructure and food systems. Sustainability bonds address both green and social issues.

Initially, the fund will be managed by Calvert Research & Management – part of Morgan Stanley – by a team of experts specialised in sustainability with a proven green bond track record since 2011. 

(Don't forget that firms have until 28 March to enter our The Third Annual WealthBriefing Wealth For Good Awards programme.)