Stockholm (NordSIP) – BNY Mellon Investment Management unveiled a trio of new ESG-focused thematic strategies – Future Earth, Future Food and Future Life. The strategies focus on achieving long-term capital growth through global exposure to companies that contribute to “reducing environmental and natural resource pressures”, and benefit from demand for “technological food and agricultural innovations” and aging, respectively. Newton Investment Management, a London-based subsidiary of BNY Mellon, will manage the funds.
“At Newton, all our thematic products are subject to our deep-rooted, integrated ESG approach,” a recent report on thematic strategies by the Newton Investment Management says. “For our Future Earth and Future Food strategies, the linkages with ESG consideration is clear. It is paramount that any thematic product seeking to gain exposure to key trends associated with sustainability should take the ESG characteristics of companies into consideration.”
“Thematic strategies have multiple use cases depending on requirements,” the same report adds. “They enable investors to gain direct and targeted exposure to specific areas of the economy that offer the prospect of sustainable returns over the long term. Even within broader thematic areas such as those represented by our Future Earth, Future Food, and Future Life strategies, investors are able to target potential returns associated with major trends like the transition towards clean energy provision, the circular economy, and the growth in spending by the over-60s. Equally, thematic strategies can be used as building blocks, offering a degree of diversification build around structural changes.”
The strategies are actively managed by Charles French, head of equities at BNY Mellon subsidiary Newton Investment Management, and Yuko Takano, co-lead manager on Newton’s Sustainable Global Equity strategy and the BNY Mellon Sustainable Global Equity fund.
“Thematic investing has always been core to Newton’s investment philosophy since its inception over 40 years ago,” Newton CIO Curt Custard says. “Disruptive change is happening at a record pace across all elements of our lives. We believe that by identifying those changes early and investing in them over the long term we can capitalise on these structural drivers of growth for our clients.”