Growth-focused fund transcends ESG with investments in equity, debt, and derivative securities
Canadian investors who want to marry profit with sustainability now have a new way to support the fight against climate change, thanks to a new ETF from Purpose Investments.
The Purpose Global Climate Opportunities Fund has launched on the TSX under the ticker CLMT. The growth-focused fund seeks to provide long-term capital growth by investing in equity, debt, and derivative securities of companies that are best-positioned to contribute to – and benefit from – mankind’s crusade against climate change.
“The fight against climate change is one of the largest coordinated human undertakings in history, and will leave no industry untouched,” said Purpose founder and CEO Som Seif. “There will be winners and losers as businesses race to adapt and innovate.”
The fund will be global in scope, and it will be diversified across small-, medium-, and large-cap companies. It will be focused on industries, sub-sectors, and businesses that may capitalize on opportunities to surrounding global commitments to curb greenhouse gas emissions and achieve carbon neutrality.
Unlike other sustainability funds, CLMT goes beyond filtering ESG data and focuses on a broad combination of low-impact businesses, transformational technologies, and high greenhouse gas reduction potential. It actively selects global equities across various sectors including natural resources, electricity generation, utilities, and industrials.
“As with all our funds, ESG is a meaningful consideration, but not the only consideration,” said Purpose Chief Investment Officer Greg Taylor. “This fund has a growth-first focus, and there are meaningful investment opportunities in energy transition in addition to green technologies that we shouldn’t ignore.”
Taylor pointed to traditionally high-emission sectors as an area where some of the most significant change needs to happen, which presents exciting investment opportunities.
“Above all, we believe this is an unprecedented opportunity to invest in the future and generate strong returns while doing so,” Seif said.