Stockholm (NordSIP) – Man GLG announced the launch of a new strategy aiming to generate alpha by identifying the strongest companies globally who, through embracing sustainability, ultimately increase shareholder value. Man GLG is the discretionary investment management business of Man Group.
The new UCITS fund is called Man GLG RI Global Sustainable Growth and is co-managed by Virginia Nordbäck (Pictured) and Rory Powe. It will focus on businesses run in a sustainable way, thinking beyond short-term profit maximisation, and that are in a strong position to tackle negative environmental externalities.
“Virginia and Rory have an established track record of investing in sustainable, growth-oriented companies across Europe,” Teun Johnston, CEO of Man GLG, said. “With this strategy, they will be able to apply their expertise to the global investment universe with a focus on those companies leading the way on sustainability. The strategy underscores our commitment both to offering clients a breadth of investment opportunities across our platform and to responsible investment.”
The portfolio will hold between 25 and 35 equity positions and aim to outperform the MSCI World Index. According to the press release, the fund managers will combine standard considerations about profitability, the strength of companies’ balance sheets and valuation with considerations of how mismanaged ESG risks can hinder future growth. Nordbäck and Powe will also engage with companies to encourage best practice ESG behaviours and drive change.
“It’s our view that in the future, companies who want to keep their world-class status need to be leaders in ESG in order to attract and retain talent, customers, and ultimately receive capital allocation,” Nordbäck explained. “Investors will gravitate to those businesses that take their wider sustainability responsibilities seriously and concentrate on integrating these into their everyday practises. We’re focused on delivering strong results to investors through performance while supporting companies who share our thinking on sustainability, and making a positive difference.”