Principal Asset Management Launches Article 9 Food and Biodiversity Fund
11 JUL, 2024
By Jose Luis Palmer from RankiaPro Europe
Principal Asset Management has introduced the Global Sustainable Food and Biodiversity fund, an initiative designed to attract capital by investing in companies focused on agriculture and food security. This fund is targeted at both retail and institutional investors, aiming to make a significant impact on global sustainability efforts.
The newly launched fund holds 80% of its portfolio in companies that actively promote biodiversity through innovative business solutions or stringent policies. This strategic investment is aligned with the United Nations Sustainable Development Goals (SDGs), leveraging Principal's extensive research capabilities and SDG alignment tool to track and support companies targeting key goals such as zero hunger, good health and well-being, clean water and sanitation, and responsible consumption and production.
Fund Management and Classification
Classified as Article 9 under the European Union's Sustainable Finance Disclosure Regulation (SFDR), the Global Sustainable Food and Biodiversity fund represents one of the highest standards for sustainable investments. This classification underscores the fund's commitment to sustainability and its proactive approach to addressing environmental and social challenges.
Martin Slipsager Frandsen, a global equities portfolio manager at Principal, will manage the fund. His expertise and experience in the field are expected to drive the fund's success and ensure it meets its ambitious sustainability targets.
By investing in companies that are at the forefront of promoting sustainable agriculture and biodiversity, Principal Asset Management aims to contribute to a more sustainable future while providing attractive returns for its investors.
We are excited to bring the Global Sustainable Food and Biodiversity fund to clients across the globe. We believe sustainable food production is the most credible path to improving biodiversity.
With agriculture remaining the most biodiversity-exposed sector, it holds the greatest potential for impact and we believe current demand for biodiversity will lead to great investment opportunities.
We launched the strategy two years ago and have been previewing with potential investors during that time frame. We are excited to be able to meet the needs of those investors who require a registered fund vehicle.
Martin Slipsager Frandsen, global equities portfolio manager at Principal.
