Clarien Bank Ltd has launched a new international equity fund with a focus on companies engaged in sustainable development.

The bank said the fund seeks to generate strong financial returns for clients, as Clarien invests not only in companies that contribute to positive and social environmental outcomes, but also those with a proven performance track record.

It added the fund seeks to invest in high-quality companies that align themselves with primary sustainability themes including:

• Climate (cleaner energy, resource efficiency, sanitation and recycling, and sustainable transportation)

• Health (access to quality care, food security and clean water, medical innovation and wellbeing)

• Empowerment (education and employment services, financial security and inclusion, information and communication technologies, and sustainable infrastructure)

Clarien said the themes are based on the United Nations Sustainable Development Goals, which offer a roadmap for identifying thematic opportunities that have gone previously unnoticed or underappreciated by traditional investors.

In total, 193 nations have expressed a commitment to achieving these SDGs, signalling broad global consensus and creating a powerful tailwind for aligned companies, Clarien said.

“Investments that align with SDGs can help to end poverty, protect the planet and improve the lives and prospects of people around the world,” said Miguel DaPonte, Clarien’s SVP, head of investment management.

“The UN’s SDGs address challenges relating to economic prosperity, environmental sustainability and social inclusion and as we invest in companies with the same mission and values as us, we are excited to see how it will encourage innovation and help to create healthier, greener and safer communities for us all.”

In addition to Clarien’s own experienced investment management team, the bank said, it will work with fund managers, AllianceBernstein, a US-based firm providing industry-leading research and investment solutions.

Mr DaPonte said: “Clarien’s international equity fund will invest in companies creating solutions to the world’s largest sustainability challenges.

“The bank will prioritise companies that demonstrate strong financial returns, have healthy balance sheets and a proven competitive advantage to help ensure durable growth for our clients over time.”

The fund has also selected companies that are:

• Managed in alignment with stakeholders — not only shareholders — and are best positioned to deliver sustainable, long term growth

• Have a positive valuation case, which is essential to achieving dual goals of strong financial and social outcomes

• In alignment with the UN’s SDGs, as this provides exposure to long-term secular tailwinds (conditions that may lead to higher profits, revenue or growth)

Mr DaPonte added: “There is significant impact to be made by investing in companies with a high level of corporate social responsibility.

“It not only encourages firms to improve business activities and responsibility practices, it also creates additional shareholder value. This is especially important as we see countries around the world facing multiple environmental and health challenges at the national and global level.”

When measuring outcomes of the fund, Clarien said, it will look at 18 metrics covering key environmental, social and governance indicators, secured from a qualified third party.