Legg Mason has launched its new QS Investors Global Responsible Fund in response to a growing demand for global equities that factor in environmental, social and governance (ESG) criteria.
The new fund would aim to outperform the MSCI World ESG Leaders Index and utilise the expertise of the team managing the Legg Mason QS Investors Global Equity Fund which had proven global ESG capabilities in the institutional market, the firm said.
QS Investors’ investment approach blended fundamental and behavioural perspectives through a systematic process.
The requirements for the companies, that the fund would look at, would be two-fold and would include a proprietary model of ESG assessment and, additionally, a strict filter that would aim to remove firms that did not meet ethical criteria, Legg Mason’s head of Australia and New Zealand, Andy Sowerby, said.
“The additional restriction on certain sectors and stocks on ethical grounds makes this investment solution an ideal core holding for investors seeking to align their values and investments without sacrificing the potential for high returns,” he said.