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Virgin Money launches new ‘Climate Change’ fund

23 January, 2008

Unlike typical ‘green’ funds, The Virgin Climate Change Fund can invest in all industry sectors but will only invest in companies with lighter than average environmental footprints for their sector. This ‘lighter footprint’ strategy aims to capitalise on research which suggests that companies with a strong environmental focus can outperform their ‘dirtier’ competitors.

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This new fund comes at a time when consumers are increasingly demanding more information about the environmental damage companies cause. Research from Virgin Money reveals that up to 29 per cent of consumers – around 10.9 million people – have favoured products and services from environmentally aware companies in the past year as they have woken up to the issue of climate change. And around 68 per cent of people say if data on companies’ carbon footprints was more readily available they would pay more attention to the issue.

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To launch the fund Virgin have teamed up with asset management firm GLG Partners, who will act as the fund advisers, and environmental research organisation Trucost PLC, who will provide the environmental data. Trucost wrote the UK Government's environmental reporting guidelines, published in 2006.

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The Virgin Climate Change Fund is available through IFAs and direct to the public. There are no initial charges, a 1.75 per cent annual management charge and a 20% possible performance bonus.