Aberdeen Standard Investments (ASI) has launched a range of three climate-focused funds aiming to support the shift to net zero global emissions.
All three vehicles in the new ASI Climate Range are EU SFDR Article 9 funds, each focusing on specific aspects of the journey towards net zero, and will be managed via a team approach.
The Aberdeen Standard SICAV I - Global Climate and Environment Equity fund invests in companies that are innovating and providing the solutions to the most carbon-intensive sectors of the economy through a thematic framework combined with fundamental analysis.
This is a concentrated portfolio of companies reflecting the firm's highest convictions in terms of financial returns and climate impact.
It will be available for an annual management charge (AMC) of 0.75% and an ongoing charges fee (OCF) of 0.9%.
The Aberdeen Standard SICAV I - Climate Transition Bond fund invests in the leading emissions reducers, as well as in projects that tackle the physical impacts of climate change and solutions providers.
This is a portfolio of debt issuers, mitigating the causes and adapting society to the consequences of climate change.
It will be available for an AMC of 0.45% and an OCF of 0.65%.
Finally, the Aberdeen Standard SICAV II - Multi-Asset Climate Opportunities fund invests in climate solutions such as clean energy, electric vehicles and smart working technologies through equities, bonds and renewable infrastructure.
It is a diversified investment approach that aims to generate attractive returns over the long term.
It will be available for an AMC of 0.5% and an OCF of 0.74%.
Eva Cairns, head of climate change strategy at ASI, said: "Climate change is one of the largest threats of our time and impacts not only future generations, but also many countries and companies around the globe today. Tackling it requires trillions of dollars of investment every year to transform our world into one that emits net zero greenhouse gases.
"This transformation comes with significant opportunities for investors. To have real world impact, we need to look to the future and invest in the solution providers and companies that will help make this transition to net zero happen."
Since the funds will allocate a substantial share of capital to climate solutions, all three have high EU Taxonomy scores.
ASI has also developed a climate scenario analysis tool in collaboration with the Aberdeen Standard Research Institute, which helps identify the companies that are set to be leaders during the transition to net zero.
Cairns added: "Our approach to climate scenario analysis is motivated by the view that a rigorous, forward looking and transparent methodology is essential for embedding climate risks and opportunities into our investment decision making and delivering superior outcomes for our clients.
"We believe that our bespoke approach represents a significant advancement in the field of climate-scenario analysis, giving us greater confidence in the results and their applicability to real-world investing."
ASI has also signalled its commitment to the net zero aim by joining the Net Zero Asset Managers Initiative and published eight specific climate commitments at its 2021 AGM.