Sector Review: Looking under the bonnet of global sustainable funds

There has been a boom in responsible fund launches in the IA Global sector in recent years but investors should always look beyond the fund’s name for clarity on the underlying investments

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Daniel Pereira, investment research analyst, Square Mile Investment Consulting and Research

At the end of February 2021, the Investment Association (IA) Global sector comprised 376 funds with a combined level of assets totalling in excess of £343bn.

To be included in this category, funds must invest at least 80% of their assets in global equities, and not qualify for the UK, other regional or the IA Global Equity Income sector.

During the past few years we have seen a high number of responsible-orientated strategies launched into this peer group. Today, the sector is home to more than 60 responsible funds that account for more than £40bn (or 12%) of overall assets.

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