ClearBridge launches sustainability 'improvers' global value equity fund
Jean Yu (pictured) will co-manage the fund alongside Grace Su.
Managed by Grace Su and Jean Yu, portfolio managers on ClearBridge's global value equity team, the Irish-domiciled fund will invest in a concentrated portfolio of around 30 to 40 companies that are improving their ESG practices, and that the managers believe are undervalued.
Su said she will be looking for companies that are committed to improving their sustainability profiles over time, particularly in sectors often overlooked by traditional ESG strategies.
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«Companies that address material ESG weaknesses reduce their operating risk, which can be a catalyst for unlocking shareholder value,» she said.
Yu added while investors have sought the comfort of sustainability in a narrow range of companies that are already displaying good ESG ratings, this fund will take a broader look.
«We believe one needs to look more broadly, and for investors wanting to participate in the transition towards a more sustainable economy, while retaining the potential for excess returns, this is a compelling strategy,» she said.
All portfolio holdings have an ESG improvement thesis at purchase, with corresponding sustainability targets that are monitored and measured for improvement.
Companies that do not demonstrate expected improvements against their sustainability targets are removed from the portfolio, the asset house said.
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