The fund is to be classified as an Article 9 fund under the EU’s Sustainable Finance Disclosure Regulation, the firm said in a statement.

Aimed at both institutional and retail investors globally, the fund is aligned with the UN’s Sustainable Development Goals (SDGs), targeting firms that align with zero hunger, good health and wellbeing, clean water and sanitation, and responsible consumption and production. In addition, about 80 per cent of the fund’s portfolio holdings are investments in companies that seek to target biodiversity impact through their solutions or business policies, the firm added.

With the world’s population set to reach 10 billion by 2050, the firm highlighted how about 56 per cent more food will be required to sustain the growth. As such, the demand for sustainable food and biodiversity is growing, with a proliferation of technology within agriculture leading to an acceleration of investment potential while lowering the environmental impact of the food system.

Martin Slipsager Frandsen, global equities portfolio manager at Principal Asset Management, believes that sustainable food production is the most credible path to improving biodiversity. “With agriculture remaining the most biodiversity-exposed sector, it holds the greatest potential for impact and we believe current demand for biodiversity will lead to great investment opportunities,” he said.

The fund will seek to provide capital growth through investments in companies committed to sustainable agriculture and food security. It targets food and agriculture related investments in various sectors, specifically in companies emphasising nutrition and agricultural/environmental operating efficiency.

The launch marks a continuation of broader efforts to offer SDG-aligned and thematic products for clients. The Principal Global Responsible Equity Fund, a UCITs strategy, will reach its three-year track record later this month, the firm added.

With forestry, sustainable agriculture and food production moving up the agenda, this news service has been covering these areas more intensely, as population pressures, wars, supply chain disruptions and the impact of new technologies have shaken up the space. See more commentary here.

Stewart Investors
, a long-only equity specialist focused on sustainable investing since 2005, has just launched a Global Emerging Markets (ex-China) Leaders Sustainability Fund. The fund is available as a Variable Capital Company (VCC) for investors in EMEA and Asia, reflecting growing appetite among investors for the investment manager’s emerging markets-focused funds.

The UCITS fund, managed by Jack Nelson, uses the team’s expertise of investing in emerging markets, the firm said in a statement. It will invest in high-quality companies outside mainland China, with the aim of achieving attractive long-term capital growth and contributing to a more sustainable future across global emerging markets.

The fund follows the launch of the Global Emerging Markets Leaders Sustainability Fund in 2020, which invests in leading companies valued at over $1 billion that positively contribute to, or benefit from, sustainable development, the firm added.

The Global Emerging Markets (ex-China) Leaders Sustainability Fund will focus on identifying 25 to 45 mid to large-cap companies with quality management teams. It will exclude firms listed in China or companies whose majority of revenue is derived from China. This reflects recent investor appetite for China allocations separate from global emerging market specialist funds, as well as pockets of concern over perceived investment risk and volatility in China, the firm said.

Stewart Investors has an investing heritage dating back to 1988 and manages more than $18.6 billion of assets. The team aims to achieve positive social and environmental outcomes by investing in companies that support positive contributions, such as health and wellbeing, financial inclusion, reducing waste, water and energy efficiency, and renewable energy.