Man GLG has launched a global sustainable growth fund targeting companies that build a competitive advantage and "increase shareholder value" as a result of embracing sustainability.
Managed by Virginia Nordbäck and Rory Powe, Man GLG RI Global Sustainable Growth will invest in a portfolio of 25 to 35 stocks across the market-cap spectrum with the aim of outperforming the MSCI World index.
Powe and Nordbäck will focus on the competitive advantages of the fund's holdings, including barriers to entry, as well as their revenue traction potential, robustness of profitability, strength of their balance sheets and valuation.
The team will consider how ESG risks can impede future growth, with companies in a "strong position to tackle negative environmental externalities" favoured, according to Man GLG.
It said that "from time to time" the managers will engage with some holdings to encourage best practice ESG behaviours and drive change.
Nordbäck said that "companies who want to keep their world-class status" in the future will "need to be leaders in ESG in order to attract and retain talent, customers, and ultimately receive capital allocation".
She added: "Investors will gravitate to those businesses that take their wider sustainability responsibilities seriously and concentrate on integrating these into their everyday practises.
"We are focused on delivering strong results to investors through performance, while supporting companies who share our thinking on sustainability, and making a positive difference."
CEO of Man GLG Teun Johnston said Powe and Nordbäck have an "established track record of investing in sustainable, growth-oriented companies across Europe", and will "apply their expertise to the global investment universe with a focus on those companies leading the way on sustainability".
He added: "The strategy underscores our commitment both to offering clients a breadth of investment opportunities across our platform, and to responsible investment."