Aberdeen Standard Investments has launched the Multi-Asset Climate Solutions (MACS) Fund in partnership with The Big Issue Group.
The Fund is designed for those who want to invest in companies whose products and services play a decisive role in mitigating climate change and building a more sustainable future. These companies are expected to grow rapidly as the world accelerates its shift towards net zero carbon emissions.
A multi asset fund enables investors to invest across a range of different assets classes. MACS therefore provides investors with the opportunity to actively participate in the climate shift whilst spreading risk across equities, bonds and real estate.
The Fund will invest in renewable energy, electric vehicles, smart working, energy efficient buildings and other green technologies. While it is driven primarily by its positive selection criteria, it will ensure it has no exposure to fossil fuel producers and a list of other controversial activities.
The Big Issue Group (TBIG) partnered with Aberdeen Standard Investments (ASI) due to its strong multi-asset capabilities and expertise in ESG investing. TBIG’s long-standing commitment to dismantling poverty and providing a wide range of opportunities to those in need, offered a fitting opportunity to partner with ASI on MACS. The Fund also benefits from guidance from the Climate Advisory Group which consists of ASI, TBIG and external experts whose responsibility is to review the investment framework.
Furthermore, ASI has committed to sharing 20% of the net revenue generated by the Fund to support TBIG’s social causes. The Big Issue magazine works with over 1,700 vendors to earn a living by selling the magazine. In 2021 it will continue to create more employment opportunities for vulnerable and unemployed people. The Group’s work also includes direct investment into more than 350 social enterprises across the UK. With 60% of investments made into the most deprived communities in the UK, TBIG’s investees provide 9,000 jobs and serve over one million people.
MACS will be managed by lead fund manager, Craig Mackenzie, Head of Strategic Asset Allocation, as well as Chris Paine, Investment Manager, and Fiona Ritchie, ESG Investment Manager, Multi-Asset Solutions.
Craig Mackenzie, lead fund manager of MACS, Aberdeen Standard Investments, commented:
“We have searched the globe to find companies whose products drive the shift to a zero-carbon green economy. Renewable energy, electric vehicles and other green technologies are likely to expand rapidly in the coming decades, offering a strong growth opportunity. Our multi-asset approach diversifies risk across asset classes, allowing our customers to put their money to work financing the climate transition with less volatile investment returns.”
Nigel Kershaw OBE, Chair of The Big Issue Group, commented:
“The Big Issue’s mission is to build a world that works for everyone, for now and for future generations. This Fund is a natural extension of our mission, given that the negative effects of climate change are likely to have a disproportionate impact on vulnerable people across the world. We are proud of our partnership with Aberdeen Standard Investments and are excited to bring such an innovative product to market.”
ASI has selected FTSE Russell as its climate solutions data provider. ASI will use FTSE Russell’s industry leading new Green Revenues 2.0 data model which measures the green revenue exposure of portfolio companies to comply with the incoming EU Taxonomy. The regulation defines those economic activities that play a key role in the transition to the green economy.
Arne Staal, Global Head of Research and Product Management, FTSE Russell, said:
“We are delighted that ASI has selected our Green Revenues 2.0 data for the launch of its innovative new Multi-Asset Climate Solutions fund. ASI has been early to recognise that green revenues data used to quantify a fund’s alignment to the green economy will be essential in complying with the incoming EU Taxonomy disclosure requirements for sustainable investment products by the end of 2021.”
MACS will initially be available to financial advisers through Standard Life’s Wrap and Elevate platforms, amongst other in due course. After the Fund has been assessed, retail investors will also be able to access it directly through The Big Exchange, the UK’s first online investment platform to only list funds that are rated for their positive impact on the planet and society.
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Notes to editors
The Multi-Asset Climate Solutions Fund:
- Investment objective: The Fund aims to generate growth over the long term (5 years or more) by investing in a diversified portfolio of equities and corporate bonds issued by companies whose core business is to offer products and services that enable the transition to a sustainable low carbon economy.
- The Fund is competitively priced with an AMC of 50bps.
- Base Currency Sterling.
- Registered for sale in the UK only.
About Aberdeen Standard Investments:
- Aberdeen Standard Investments is a global asset manager dedicated to creating long-term value for our clients. With over 1,000 investment professionals, we manage £455.6 billion* of assets worldwide. We have clients in c.80 countries supported by over 40 offices globally. This ensures we are close to our clients and the markets in which we invest. (*as of 30 June 2020)
- We are high-conviction, long-term investors who believe teamwork and collaboration are the key to delivering repeatable, superior investment performance.
- Standard Life Aberdeen plc is headquartered in Scotland. It has over 1 million shareholders and is listed on the London Stock Exchange.
- You can access the Aberdeen Standard Investments media centre here: https://www.aberdeenstandard.com/news-and-media
About The Big Issue Group:
- The Big Issue is a social enterprise which exists to dismantle poverty by creating opportunities, through self-help, social trading and business solutions.
- The Big Issue is an award-winning weekly entertainment and current affairs magazine, which offers a new hope for homeless and vulnerably housed people across the UK.
- Vendors buy magazines for £1.50 and sell to the public for £3, keeping the difference. In this way the magazine provides them with the means to earn a legitimate income. Vendors come from a variety of backgrounds and face a range of issues, but all are experiencing the effects of poverty. Upon becoming a Big Issue vendor they receive training, are allocated a fixed pitch from which to vend, and sign a vendor agreement, covering their conduct whilst selling the magazine.
- Since its launch in 1991, over 200 million copies of The Big Issue magazine have been sold by over 100,000 vulnerable people.
- Founded in 2005, Big Issue Invest (BII) is the social investment arm of The Big Issue which extends the organisation’s mission to dismantle poverty through creating opportunity. BII offers loans and investment from £20,000 to £3 million to social enterprises and charities across the UK. The capital raised by BII is from private sources and not from sales of the magazine. Big Issue Invest currently manages or advises on £170 million of social funds.
- The Big Issue Foundation is the organisation’s charitable arm, which exists to link vendors with the vital support which will help them address the issues which have led or contributed to their circumstances. The Foundation works exclusively with vendors, offering support, advice and referrals.
- For further information please go to www.bigissue.com
About The Big Exchange:
The Big Exchange is a movement of people who believe finance can be fairer for all. Founded in 2018 by The Big Issue with 13 partners today it has 40 funds on its online platform which have combined assets under management of £22 billion.
In October 2020, after three months of a successful BETA testing, The Big Exchange publicly launched as one of the UK's first actively-managed social and environmental impact investment platforms.
It is open to anyone seeking investments that benefit people’s lives and the planet without necessarily sacrificing potential financial returns. Customers can set up a traditional individual savings account (ISA), a junior savings account (JISA) or a general investment account (GIA) and invest directly in expertly managed impact-rated funds, or risk-rated fund bundles.
Any UK resident can access The Big Exchange via its website at www.bigexchange.com, which has been specifically designed to make it as easy as possible for everyone wanting to become a social or impact investor or to learn more about it.
Risk warning: Making money is not guaranteed when investing and your capital is at risk. Tax treatment depends on the individual circumstances of each client and may be subject to change. Past performance is not a reliable indicator of future results.
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