Investor ‘appetite’ for green strategies makes FT launch two new funds
Asset management firm Franklin Templeton confirmed to Net Zero Investor it is planning to launch two new green investment vehicles, in a fresh drive to target large investors across Europe.
The fund launches come as there is "a healthy appetite" among European pension funds, insurance companies and other large European institutional investors for sustainable investment strategies, according to Dina Ting, head of global index portfolio management at Franklin Templeton.
Ting explained that the new Franklin Future of Food and Franklin Future of Health and Wellness funds “take a multi-dimensional investment approach to stock selection in that they leverage long-term societal shifts resulting from macro-economic, geopolitical and technological developments."
When asked to elaborate on the vehicles that will focus on food and wellness, Ting said that global population growth and the subsequent need to increase food production are key challenges for investors in the future, "driving innovation and investment in new and more efficient technologies."
"By 2050, the global population will have increased by two billion to almost 10 billion, meaning that food production will need to increase by around 60%. The wellness market is also projected to grow from $4.4 trillion in 2020, or 5% of global economic output, to $6.8 trillion by 2030.”
The two vehicles will primarily target large investors across Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Spain, Sweden and the UK, and will be managed by Ting.
The new funds will list on the Deutsche Börse Xetra, the London Stock Exchange and the Borsa Italiana.
Investee companies
The new food-focused fund will focus on companies that work to create a sustainable food ecosystem, primarily representing industries such as agriculture machinery, smart farming, aquaculture and sustainable and healthy food, amongst others.
Ting stressed that they "must be deemed" by Institutional Shareholder Services (ISS) to be contributing to SDG 13 (climate action), SDG 14 (life below water) or SDG 15 (life on land).
Meanwhile, Franklin Future of Health and Wellness will go after companies that utilise technology and demonstrating innovation within the healthcare industry as well as companies that are enabling access to care. This includes companies from areas such mind and body wellness, senior diseases and independent aging recognized by ISS to be contributing to SDG 3 (good health and well-being).
