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October 7, 2021

GMO unveil climate-focused product for Australian investors

By Verdict Staff

Investment manager Grantham, Mayo, Van Otterloo (GMO) has launched a new investment trust for its Australian wholesale investors.

The trust, which will be headed by Lucas White, will offer investors with access to GMO’s Climate Change Strategy.

Climate Change Strategy invests in companies that GMO expects to benefit either directly or indirectly from efforts to mitigate or adapt to the long-term effects of global climate change.

Launched in April 2017, the strategy builds on the work of GMO co-founder Jeremy Grantham, who has been global advocate for climate change efforts.

It currently has $917m in assets under management.

Commenting on the development, White said: “Climate change awareness, attitudes and opportunities have come a long way since GMO began writing on the subject in 2010.

“Improving economics for clean energy, combined with a growing global awareness of the magnitude of the problem we’re up against, will support secular growth in the climate change sector for decades to come.”

White also noted that investing in companies that help the world address climate change represents tremendous opportunities to generate strong returns.

“Implementing a disciplined, value-oriented approach and a careful examination of the fundamentals are also critical in navigating a sector likely to be rife with hype and stories,” he added.

The new trust will be part of GMO Australia’s current suite of funds including the GMO Quality Trust, two systematic global macro strategies and an emerging market equities trust.

Last year, GMO agreed to purchase Usonian Investments, a value-oriented Japan equity manager that manages over $1bn.

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