Neuberger Berman has launched the Neuberger Berman Climate Innovation Fund. The UCITS fund will be run by New York-based portfolio managers, Evelyn Chow and Charlie Lim, who have a two-year track record in the strategy. They will be backed by Neuberger Berman’s global equity research team of more than 49 investment professionals, as well as the firm’s data science and ESG teams.
Designated as Article 8 under the EU Sustainable Finance Disclosure Regulation (SFDR) and benchmarked against MSCI All-Country World Index (ACWI) (Total Return, Net of Tax, USD), the fund focuses on the key enablers and beneficiaries of climate innovation, by combining rigorous fundamental analysis with Neuberger Berman’s recognised leadership in environmental, social, and governance (ESG) investing.
The fund seeks to capture alpha by investing in technologies and solutions along the climate technology maturity curve, and will maintain 30–60 global equity holdings.
The Neuberger Berman Climate Innovation Fund builds on a robust platform of thematic equity investing that spans themes ranging from next-generation mobility to the space economy.
“Behavioural changes will only get us so far – we see a EUR 90tn funding gap from now through 2050 to address climate change. According to the International Energy Agency (IEA), over 90% of the emissions reduction required to reach net zero will stem from the proliferation of low carbon technologies.”Evelyn Chow, Neuberger Berman
“As such, we need to triple the level of annual investment taking place to combat climate change, which is driving the emergence of a new, historic capex cycle. We believe that investing in climate innovation offers both a secular growth opportunity and a boon to society.”Charlie Lim, Neuberger Berman
“Our clients are increasingly cognisant of the risks and opportunities that exist around climate change and the broader energy transition, whilst also recognizing that this can affect all asset classes, across public and private companies in their portfolios. As technology and policy converge to support climate innovation, we believe this theme offers compelling opportunities for investors by directing capital to companies developing the most effective technologies whilst also allowing them to participate in a more sustainable society.”Sarah Peasey, Head of Europe ESG Investing at Neuberger Berman