Redwheel adds UK climate engagement fund

Redwheel has announced the launch of their UK Climate Engagement Fund.

This new UCITS fund will be managed by Redwheel’s UK Income & Value team in accordance with Article 8 SFDR. The fund aims to incorporate an explicit climate aim through active engagement, to align companies with the Paris Agreement. Combining a climate assessment framework with active engagement, the team will invest in a portfolio of UK stocks, seeking to progress transition plans with carbon intensive companies.

John Teahan will lead the strategy with support from Nick Purves and Ian Lance.

John Teahan says, “Action to mitigate climate change is critical, but the current investment industry response is not working. Divestment and exclusion may decarbonise a portfolio, but not the real world. We believe active ownership is more powerful, where investors don’t just act as passive bystanders but communicate with companies to influence and support long-term success, create value, and accelerate a realistic carbon transition.

By integrating a specific climate aim within the fund’s objective, we have a mandate to urge companies to decarbonise effectively, at the same time delivering real-world impact. These companies are also in a prime position to take advantage of the overlooked opportunities within the climate transition as part of their decarbonisation drive. As consumer preferences and regulations change, new markets are opening up. Furthermore, companies with a low emissions profile are valued increasingly at a premium to high emitting companies, representing a compelling opportunity for investors prepared to invest in attractively valued carbon-intensive companies and push for change.”.