UK long-term savings and retirement business Phoenix Group announced today the launch of a new multi asset climate solution, with an assignment of £338 million (US$408 million) of with-profits investment funds, to be managed by investment manager Robeco.

According to Phoenix, the new solution will invest in current and future climate change leaders, and companies pursuing a net zero decarbonization strategy, while aiming to meet the long-term investment objectives for with-profits customers through a balanced portfolio of equity and credit.

Asset allocations for the new solution include net zero climate equities, climate global bonds, global green bonds and SDG high yield bonds, as well as equities in areas such as smart energy, sustainable property, smart materials and smart mobility.

James Mitchell, Head of Strategic Partnerships and Research, Phoenix Group, said:

“At Phoenix, we are continuing to find ways to create a sustainable future for all, including renewed investment into social housing, infrastructure and cutting-edge green technologies. Our partnership with Robeco drives forward this commitment across different asset classes as we aim to be net zero throughout our investment portfolio by 2050.” 

Phoenix stated that it selected Robeco to manage the multi-asset climate solution after a competitive search process. In 2021, Phoenix outlined a series of ESG-related expectations for asset managers, stating that it will only partner with investment organizations that are committed to “achieving positive change,” and requiring asset managers to fully embed responsible investment practices in their investment decision-making, risk-management and governance processes, and strongly encouraging them to make net zero commitments.

Ed Collinge, Global Head of Client Solutions, Robeco said:

“It is exciting to be partnering with a like-minded investor such as Phoenix Group, who is looking to achieve strong investment returns for their policyholders whilst also embracing and integrating climate goals to enable a more sustainable future for all.  Sustainable objectives are becoming a cornerstone of many investors’ portfolios and we were delighted to jointly create an innovative solution that seeks to both benefit from and enable the climate transition.”

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