Amundi subsidiary teams up with CDP for climate fund launch

The CPR Invest - Climate Action fund will invest in a 700-stock, cross-sector universe of global companies that are tackling climate change-related risks and are aiming to meet the Paris Agreement's target of keeping global temperature increases "well below" 2C.

CPR AM's latest thematic fund follows the October launch of a fund investing across the whole education ecosystem, targeting growth opportunities from childhood education through to adult learning.

The firm's thematic equities range has a total of €7bn in AUM and includes products focussed on ageing, food, lifestyle, and disruption strategies. 

Managed by global equities fund manager Alexandre Blein, the latest launch will leverage CDP's 7,000 company-strong collection of self-reported environmental data, which CPR AM claims is the most comprehensive data of its kind in the world.

CDP's first involvement in the design and creation of an investment fund will allow CPR AM to combine environmental data disclosure and ESG analysis to determine the investment universe.

The firm said this combination will allow it to assess a company's ability to generate economic value with positive environmental stewardship.

Specifically, the fund will leverage an overview of external climate ratings through CDP and a science-based target, an extensive ESG filter based on Amundi ratings and an exclusion of high ESG controversies through a third filter.

Director of investor engagement at CDP Europe Laurent Babikian said: "Corporate transparency on environmental issues is key but this information needs to be priced in and integrated by the market, in order to shift capital at the pace required.

"The launch of this fund demonstrates that information on corporate climate performance is not only being requested by the market but is being used in investment decision making, in this case through stock selection and screening."

Available to UK retail investors through the AllFunds platform, the fund's distributor share class will be charged a maximum subscription fee of five per cent, a 0.8 per cent management fee and a 0.3 per cent administration fee. There is also a fee of 15 per cent of the performance above the reference assets, including tax, within the limit of two per cent of net assets.

Commenting on the launch, Valérie Baudson, CEO of CPR AM, said the fund offers investors an "innovative investment solution to address climate-related financial risks".

She added: "Reducing global warming requires collective action across the private, public and not-for-profit sectors.

"Climate change affects all geographies and sectors and we believe companies play a crucial role in ensuring the objectives set in the Paris Agreement are achieved."

This article first appeared at Investment Week