PGIM has launched a new equities strategy, the Jennis Carbon Solutions Strategy, which is available to accredited investors in Singapore.
The new strategy is managed by PGIM’s active equity manager, Jennison Associates, and invests in companies pursuing decarbonisation opportunities. The strategy also looks at emissions avoided or scope 4 emissions.
The strategy looks to invest in companies in areas such as fuel decarbonisation, carbon capture and storage, electrification, renewables, infrastructure modernisation and energy efficiency.
The portfolio is fairly concentrated with around 45-65 companies and is benchmarked against the MSCI All Company World Index Investable Market Index.
The investment team is led by three portfolio managers: global natural resources equity portfolio managers, Neil Brown and Jay Saunders, and global utilities and infrastructure portfolio manager, Bobby Edemeka.
“Crucially, our Strategy looks beyond reported emissions statistics and with an eye on companies aiding in the avoidance of future emissions, which opens up significant investment opportunities that are overlooked by investors. We believe that our holistic and realistic investment approach of targeting underrepresented and underappreciated sectors, which meaningfully contribute to lowering global carbon emissions, creates a pathway for us to generate long-term returns for our investors,” said Brown.
“We believe investors are underestimating the extent to which decarbonisation is going to be driven by more sectors than originally perceived. This means that the market is missing how big the investment opportunity set really is. We are launching the Jennison Carbon Solutions Strategy in response to strong demand from our international clients to invest in a strategy that addresses this gap,” said Jessica Jones, head of Asia at PGIM Investments.