By Chloe Walker
The philanthropic investment company has made a new allocation to Plato’s Global Net Zero Hedge Fund, supporting its ambition to outperform the MSCI World Net Returns Unhedged Index while achieving a net zero carbon footprint.
Launched in September last year, the Plato Global Net Zero Hedge Fund is a global equities long/short strategy, holding a portfolio of equities with a net zero carbon intensity.
The size of the allocation was not disclosed, however Future Generation has an existing investment in the fund which accounts for 2% of the Future Generation Global portfolio.
Since inception, the fund has outperformed its benchmark (the MSCI World Net Returns Unhedged Index) by 10.19% gross of fees. This outperformance was against a backdrop of buoyant oil, gas, and coal prices, and the underperformance of many sustainability branded strategies.
Plato Investment Management’s head of short/long strategies and co-head of research, Dr David Allen, said he’s pleased to support Future Generation and deliver shareholders a global equities exposure without the usual associated carbon footprint.
“The core values that underpin the fund are highly aligned with those of Future Generation Global and we are pleased that in the Fund’s first year since inception we have strongly outperformed the benchmark, showing such a strategy can in fact deliver clients a global equities portfolio that maintains a net zero carbon footprint without compromising alpha,” he said.
“We thank the Future Generation Global Investment Committee for reviewing and ultimately deciding to allocate to our innovative strategy, which now joins a portfolio of well-established global equities Funds, all of which I have great respect for.”
Meanwhile, Future Generation global chief executive Caroline Gurney said: “The Plato Global Net Zero Hedge Fund provides a unique and differentiated allocation to the Future Generation Global investment portfolio and is managed by a highly experienced team dedicated to the dual objectives of strong social and investment returns.”