London CIV unveils equity fund with ESG edge

London Collective Investment Vehicle (CIV) has launched a global equity fund integrating environmental, social and governance (ESG) principles, alongside Morgan Stanley Investment Management.

The LCIV Global Equity Core fund’s objective is to generate a total return, comprising both capital growth and income, over a long-term period of typically between five and 10 years. The portfolio is concentrated on high-quality companies that are carbon light; is free of sectors such as tobacco, alcohol and fossil fuels; and has a carbon footprint 95% lighter than MSCI World Index, per $1 million invested.

The fund is structured as a segregated portfolio and integrates material ESG considerations – opportunities and threats to high and sustainable returns on operating capital employed – in its process.

“Responsible investment has become an increasingly important consideration for asset owners, and at London CIV we are continuing to develop solutions that meet with these high expectations from our 32 client funds,” said Jason Fletcher, chief investment officer at London CIV.

“We see these as a contributor to better risk-adjusted returns and for us it is vitally important that the managers we appoint share the same values,” he added.

The investment pool last year developed a responsible investment team, culminating in the appointment of Jacqueline Jackson to head up the team and build out London CIVs position on responsible investment and engagement.