Mediolanum International Funds Ltd (MIFL), the European asset management platform of Mediolanum Group, has announced the launch of two new actively managed multi manager funds, adding to its growing Environmental, Social and Governance (ESG) product range.
The new funds, under the umbrella Mediolanum Best Brands, include the Mediolanum Green Building Evolution Fund and Mediolanum Global Sustainable Bond Fund, both Article 9 funds under the Sustainable Finance Disclosure Regulation (SFDR).
Mediolanum Best Brands Green Building Evolution is an equity fund that aims to achieve long-term capital appreciation by investing in companies that contribute to a sustainable transition in the building sector.
Construction is one of the sectors that has the biggest impact on CO2 emissions, accounting for almost 40% of global emissions related to energy use. In addition, the sector also uses a significant amount of water and uses other resources inefficiently.
Therefore, the European Green Deal has dedicated between 200 and 300 billion euro in investment per year to guide this transition.
Firms in the construction sector need sustainability-focused investment strategies that can help them adapt to these changes and follow related regulatory developments, as well as reduce the risk of their assets becoming outdated, a risk that depends on the changes in regulations and social dynamics.
The fund will invest in a mix of companies within the climate neutral green built sector (or Green Building sector), including those involved in commercial and industrial property ownership; the development, management and advancement of Green Building technologies; and those involved in chain of construction activities.
As part of MIFL’s multi-manager approach, the fund will be initially delegated to Schroders and Robeco, which have been identified as two of the world’s leading experts on the growing sustainable real estate market. They both have a distinctive approach of Green Building which allows funds to increase diversification and at the same time capture all the opportunities that emerge.
The Mediolanum Best Brands Global Sustainable Bond Fund is a fixed income fund that aims to achieve long-term capital appreciation through sustainable investment and designed to help clients achieve their investment goals while reflecting their personal values.
The Fund will seek to benefit from the higher yield levels that are now available in the market and will invest in Green, Social and Sustainability (GSS) bonds: Green bonds fund projects that relate to the environment, such as those on renewable energy and clean public transport, while Social bonds support social aims such as the creation of affordable housing, sustainable infrastructure and food systems. Sustainability bonds address both Green and Social issues.
The fund initially will be managed by Calvert Research & Management - part of Morgan Stanley - by a team of experts specialised in sustainability with a proven green bond track record since 2011.
As SFDR Article 9 funds, these two new funds add to MIFL's range of investment solutions that focus on ESG, which also include Mediolanum Multi-Asset ESG Selection, Mediolanum Socially Responsible Collection, Mediolanum Global Impact, Mediolanum Energy Transition, Mediolanum Future Sustainable Nutrition, Mediolanum Circular Economy Opportunities and Mediolanum Innovative Thematic Opportunities.
Luca Matassino, chief business officer at MIFL, said: “At MIFL, we constantly look for investments that represent long-lasting opportunities and can generate significant value for our investors in the long term. Among these, we believe that sustainable real estate and sustainable bonds globally are a good example of it. These new fund launches expand our clients’ access to additional investment themes, combining financial returns while valuing sustainability.
Both funds are Article 9 funds, which emphasises our efforts in supporting sustainability, while focusing on clients' outcomes benefiting from the extraordinary historical change expected in the next 10 to 30 years.”
The Mediolanum Best Brands Green Building Evolution will be managed by David Whitehead Equity Portfolio Manager, while the Global Sustainable Bond fund will be managed by Dermott Aspell, Fixed Income Portfolio Manager.
