Hermes has launched an Impact Opportunities Strategy fund that will invest in companies it believes will have a positive impact on the planet.
The fund will aim to invest in between 25 and 50 stocks.
Each of the companies held in the fund must be engaged in an activity in line with at least one of the United Nation’s Sustainable Development Goals.
It is to be managed by Tim Crockford, who also runs The Hermes European excluding UK fund.
Andrew Parry, head of sustainable investing at Hermes Investment Management, said: "The scale of public equity markets means that listed companies can meaningfully influence society and the environment as powerful agents of change.
"We have seen this first-hand at Hermes over our decades of investing responsibly and driving long-term portfolio returns from purposeful companies with innovative solutions to meet society’s needs."
Adrian Lowcock, investment director at Architas, said: "This is interesting and highlights that ethical investing has truly come of age.
"The change has been the importance to a business to do social good and offer a sustainable solution.
"The appeal is more positive, instead of previously avoiding sectors and companies the focus is on companies offering growth and a social awareness.
"The challenge though is always stock selection and a concentrated portfolio of 20 to 25 funds will need excellent stock selection skills. Hermes have established themselves as experts in environmental, social and governance (ESG) and have the resources to deliver this proposition."
He said: "On the more cautious side by nature there will be periods where the fund underperforms partly due to its concentration, investment style but also its focus on ESG.
"Investors should be prepared to invest longer term in such themes as well."
david.thorpe@ft.com
