Newton Investment Management has launched a Sustainable Sterling Bond fund for retail investors, the third sustainable fund to be launched by the firm this year.
Co-managed by Howard Cunningham and Scott Freedman, it aims to achieve capital growth and income through investing in fixed interest securities denominated in sterling or hedged back into sterling.
Cunningham is already manager on the Newton Long Gilt fund, Index-Linked fund and Long Corporate Bond fund, while Freedman is an analyst and portfolio manager.
It particularly seeks those companies which have sustainable business practices and attractive investment attributes.
As well as this, companies are subject to ESG quality reviews by the firm which includes criteria such as no direct investment in any company that derives more than 10% of its turnover from the production and sale of tobacco, and avoiding those which have unresolvable ESG-related risks in favour of ones which positively manage the impact of their operations on the environment and society.
More than 35% of assets in the fund may be invested in gilts and up to 50% may be invested in sub-investment grade fixed income securities.
The fund follows the launch of the Sustainable Real Return fund in April and Sustainable Global Equity fund in January.
Julian Lyne, chief commercial officer at Newton IM, said: "The fund complements our recently expanded sustainable range. With this new fund, and throughout the sustainable range, we use ESG analysis to positively identify companies with robust business models which effectively incorporate sustainability into their core business and strategy.
"This investment philosophy ensures we provide our clients with exposure to high-quality sustainable securities with strong long-term investment opportunities."
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