PGIM targets decarbonisation theme with global equity fund launch
The portfolio has a concentration of 45-65 high-growth companies and is benchmarked against the MSCI All Company World Index Investable Market index.
Managed by the firm's active equity manager, Jennison Associates, the PGIM Jennison Carbon Solutions Equity fund will invest in companies that are reducing global carbon emissions and aiding the transition to a low-carbon economy.
After narrowing down the investable universe, the fund incorporates emissions avoided into its analysis. According to PGIM, emissions avoided, known as Scope 4 emissions, are «crucial» to the decarbonisation effort, but are often «overlooked» by investors.
The fund will invest in global all-cap stocks across several sectors, placing particular emphasis on companies where the contribution to decarbonisation and likely future growth is being underestimated.
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Companies targeted will be those contributing to a low-carbon economy through areas such as fuel decarbonisation, carbon capture and storage, electrification, renewables, infrastructure modernisation and energy efficiency.
The portfolio has a concentration of 45 to 65 high-growth companies and is benchmarked against the MSCI All Company World Index Investable Market index (MSCI ACWI IMI).
Neil Brown and Jay Saunders, global natural resources equity portfolio managers, and Bobby Edemeka, global utilities and infrastructure portfolio manager, will lead the fund's investment team.
The team incorporates analysis of ESG factors into its investment process, which also includes a number of ESG-related exclusions.
«We believe we are in the early stages of a transition to a low-carbon economy that will require decarbonisation efforts
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