It aims to delivery an attractive return for investors whilst also having a positive societal impact.
The fund will invest in emerging market economies that have strong growth potential and where capital will “have the greatest impact.”
It will be managed by ASI’s global emerging markets team who will select companies operating in emerging markets that are strongly aligned to the UN’s sustainable development goals. The team aims to hold a portfolio of 30 to 60 high-conviction stocks.
The UN’s sustainable development goals are designed to address major long-term challenges, such as climate change, growing social inequality, and unsustainable production and consumption.
The annual management charge for retail investors will be 1.30%.
The fund is the second in ASI’s sustainable development equity range. It follows the launch of the ASI Asian sustainable development equity fund in August.
Fiona Manning, investment director at ASI, said: “The UN’s Sustainable Development Goals provide an excellent framework to ensure that efforts are directed to the areas of greatest need. While some progress has been made towards achieving these goals by 2030, people in many emerging market countries are still not benefiting from growth and progress and are increasingly vulnerable to economic, social and environmental risks.
William Scholes, investment director at ASI, said: “We have a large research footprint in emerging markets which helps us to uncover high-quality SDG-aligned investment opportunities. By investing in these companies, the fund seeks to deliver both an attractive return and a positive societal impact where it matters most.”