Managed by BMO GAM’s emerging markets manager, LGM Investments, the Sicav will complement the full line-up of BMO’s global emerging market (GEM) equities fund range.
It seeks to invest in companies in emerging markets that stand to benefit from, or substantially contribute to, trends in sustainable development.
Six key themes
Companies considered for inclusion must show a clear link to one of the following ESG themes:
- Infrastructure for development: providing critical public and private infrastructure in transportation, electricity, water, housing and other sectors
- Financing the future: delivering financial services to under-banked and underleveraged economies
- Rise of the low-income consumer: supplying products and services to low and middle-income consumers as disposable income grows
- Human capital: supporting the provision of social services such as education and healthcare
- Access to new technologies: offering cutting edge technologies to enable sustainable development
- Energy for growth: fuelling the economy with efficient energy from both conventional and alternative sources
Company screening
The fund will only invest in companies that follow certain governance and sustainability standards, such as board balance, independence, transparency, disclosure and the protection of shareholder rights.
Companies will also be evaluated for concerns about unsustainable business practices such as environmental pollution, human rights and labour standards abuses, corruption and abuse of minority shareholders.
Growing impact
Sam Mahtani, portfolio manager, LGM Investments said: “There is growing evidence that environmental, social and governance issues have an impact on risk and performance. In turn, investors are showing increasing interest in meeting their long-term investment goals in a responsible way, and we have received significant demand from investors for a GEM portfolio with an ethical and sustainable investment focus.
“By evolving the strategy of an existing fund, we are very pleased to make our three decades of experience in responsible investment available to European clients seeking access to sustainable growth opportunities from the emerging markets. The fund complements our existing GEM offering, and our responsible investment fund range.”
