Principal Asset Management has launched the Global Sustainable Food and Biodiversity fund, aimed at both institutional and retail investors globally.
The strategy will be classified as an Article 9 fund under the Sustainable Finance Disclosure Regulation. The fund invests in companies that are aligned with completing their SDGs with some of the main goals being ‘zero hunger’ and ‘clean water and sanitation.’
It will be managed by Martin Slipsager Frandsen, global equities portfolio manager at Principal.
See also: Sustainable food: Fund managers must scratch beneath the surface
It primarily seeks to provide capital growth through investments in companies committed to sustainable agriculture.
With the population rapidly rising, forecasters predict the population to reach 10 billion by 2050, 56% more food will be required to sustain this, according to HDI Global. As such, a proliferation of technology within agriculture has sprouted in recent times, leading to great investment potential in these sectors.
“We are excited to bring the Global Sustainable Food and Biodiversity fund to clients across the globe,” he said.
“Current demand for biodiversity will lead to great investment opportunities.”
This article first appeared on PA Future’s sister site Portfolio Adviser
