JPMorgan, Credit Suisse launch fund for companies tackling sustainable nutrition
JPMORGAN Asset Management and Credit Suisse have launched a fund with a focus on investing in small and mid-cap companies that play a part to make food systems less carbon intensive.
Announcing it on Thursday (Nov 18), Credit Suisse said that the fund, which was launched this week with assets under management of over US$250 million, will cover innovators across the value chain - from those growing, processing to consuming food.
These are as long as the companies can address the links between nutrition, health, biodiversity and climate, as the fund was set up to target 2 of the United Nations' sustainable development goals, the ones targeting zero hunger and climate action.
Credit Suisse particularly noted that vertical farming, plant-based proteins and food testing are some of the many activities that the fund will be investing in under its 3 sub-themes: sustainable agriculture, efficient food processes, as well as sustainable and healthy diets.
It added that the fund is a global portfolio comprising 40 to 60 stocks and is available to investors on a daily basis at no investment minimum.
Commenting on the fund's attributes, Lydie Hudson, Credit Suisse's chief executive officer of sustainability research and investment products, said the 2 financial institutions will be committed to delivering both financial and purpose-driven outcomes with it.
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"This is what makes this fund so interesting as it effectively combines the need to address the climate challenges associated with the nutrition industry while seeking attractive returns on investment," she said.
Michael Strobaek, Credit Suisse's global chief investment officer, added that launching the fund with assets under management of over US$250 million is a demonstration of the importance of nutrition as a thematic investment topic.
Jennifer Wu, JPMorgan Asset Management's global head of sustainable investing, echoed this assessment.
She said: "As we transition towards a more sustainable global economy, a focus on sustainable nutrition should sit at the heart of this transition.
"This new strategy seeks to make a positive contribution to a healthier future, investing in companies which are seeking to address current inefficiencies in the food value chain by making food systems less carbon intensive and ultimately enabling healthier diets."
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