Octopus Investments has launched its first sustainable investment retail fund.
The FP Octopus UK Future Generations Fund will invest in businesses with a sustainability goal, including climate change, revitalising healthcare industries and helping people to use digital infrastructure.
The fund, which will take a multi cap approach, providing patient capital to deliver long-term growth, will be headed up by Dominic Weller. Richard Power and Chris McVey, who are lead managers of the FP Octopus UK Micro Cap Growth Fund and the FP Octopus UK Multi Cap Income Fund respectively, will be co-managers.
Octopus will donate a tenth of the annual management charge to Octopus Giving, the charitable foundation set up by Octopus in 2014 supporting UK based charities addressing the same challenges.
Dominic Weller said: “So far, most of the ESG and sustainability focused funds to launch have shown a bias towards investing in larger companies. Limited and flawed ESG data especially on smaller companies exacerbates this problem and has led to many funds avoiding companies which do not tick the right boxes altogether. This is a missed opportunity.
“We want to give our investors an opportunity to help shape the future of our world by providing much needed capital to great companies that are looking to make a positive contribution by addressing problems for our and future generations.
“It’s also critical that investors better understand the companies they are invested in, as this will help unlock more patient capital for those companies that really need it. Octopus has long-established expertise in finding attractive businesses with strong fundamentals, regardless of their size. We think this gives us a good a platform to deliver value for our investors while also allowing them to make a real difference with their money.”