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Aberdeen plans global private-market sustainability trust
When ethical investing began in the 1970s it was very much a niche market. The first funds were launched by Methodists (the Pax Fund in the US) and Quakers (the Stewardship funds in the UK).
According to the Sustainable Investment and Finance Association there are now over 100 UK ethical funds with a total market value of £10bn.
The latest fund hoping to launch in the sustainable space is the Aberdeen Global Sustainability investment trust which aims to generate a total annual return of between 6% and 8% (capital gains and reinvested dividends).
What makes Aberdeen’s offering unique is that it will invest in private markets around the world in assets which produce a positive, measurable impact in environmental and social terms.
Aberdeen has 400 investment professionals looking at private markets and already manages £67bn of unquoted assets, so adding a sustainability overlay is a natural extension.
‘Investors want to align their investment decisions with their personal values, and private markets are an ideal home for impact investing as we can take an active role in managing the assets,’ says manager Roger Pim.
The trust is hoping to raise £200m and its shares to start trading on 17 December. (IC)