New ranking of SRI, renewable energy and social funds launched

Responsible Investors regular ranking of Europe’s largest and best selling SRI, renewable and social funds.

AGF, the French funds subsidiary of Allianz Global Investors, is managing Europe’s largest pure SRI classified fund, AGF Valeurs Durables, with assets of just over €1.4bn ($2bn), according to newly classified statistics compiled for Responsible Investor by Lipper FERI, the investment data group. Under the new classification, funds are flagged as SRI only if the underlying securities in the portfolio have undergone complete environmental, social and governance screening. The new ranking splits out funds investing in sectors with so-called ‘green’ themes such as the environment, water, climate change, renewable energy or ‘social’ themes such as microfinance and human rights.

The second largest European SRI fund is F&C’s Stewardship Growth fund with just over €1.3bn in assets.
In third place is UBS’ Luxembourg-based, Equity Fund- Future Energy with just over €1bn in assets. The latter was also the best grossing SRI category fund during October 2007, the most recent sales figures, taking in €73.5m during the month. It was followed by F&C’s Ethical Bond fund, which took in €68.7m in new cash. The third best grossing fund was Bank Sarasin’s New Power Fun, which took in assets of €59m.

Under the new Lipper Feri categories, two new sectors have been added to incorporate “green” and “social” themed funds.
The first is the Equities Renewable energy/climate change sector, which includes funds investing at least 80% of assets in companies engaged in new/renewable energy such a biomass, wind and solar power, without undergoing an ESG screening process. The biggest fund in this category remains Blackrock’s Luxembourg-domiciled MLIIF- New Energy Fund with just over €5bn in assets. The fund was also by far the biggest renewables seller in October grossing almost €239m in new money, three times that of its nearest rival, Vontobel’s Global Trend New Power Tech with €80m in sales for the month. Pictet’s Clean Energy fund was third with €77.9m in sales for October, 2007.
The second new fund sector created by Lipper Feri is the Equities Social/solidarity sector, which includes funds investing at least 80% of the assets in companies engaged in microfinance, human rights or investing in solidarity projects.
The largest European fund in the sector is the French-domiciled Natexis Insertion Emplois fund, which favours job creating companies.

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