Fund manager, Dimensional, has launched a fund that invests in developed markets equities with a focus on small and mid-cap value stocks.

The Global Sustainability Targeted Value fund uses Dimensional’s approach of targeting transparent sustainability factors while maintaining diversification. The firm says this means a primary focus on reducing exposure to companies with high carbon intensity and high potential emissions from reserves. It also excludes companies involved in certain industries, such as coal, palm oil or tobacco, and those engaged in controversial activities, such as factory farming or the use of child labour, among others.

Dimensional Co-CEO Nathan Lacaze says, “With Global Sustainability Targeted Value, investors can emphasise their exposure to the size and value premiums in their sustainability allocation. Combining this new fund with our sustainability core equity funds allows investors to customise according to their own risk tolerance their exposure to securities with higher expected returns.”

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