Redwheel has launched three funds in the sustainability and thematic space, aimed at tackling climate change, biodiversity loss and poor access to healthcare.
The Redwheel Biodiversity Fund and the Redwheel Life Changing Treatments Fund launched in October, with the Redwheel Clean Economy Fund set to launch in November.
The Redwheel Clean Economy Fund will seek exposure to the technologies leading and enabling the climate transition. The strategy includes investments in the energy transition, natural resource preservation and climate adaption across up to 60 companies.
The Redwheel Biodiversity Fund, meanwhile, is focused on solutions that protect the planet’s ecosystems and limited resources. The fund will home in on companies creating green materials, protecting water ecosystems, preserving land and animal habitat, as well as facilitating recycling and recirculation on the path to a circular economy.
Amanda O’Toole (pictured), who joined Redwheel in April 2023 from Axa Investment Managers, will lead both funds. Commenting on the launch, O’Toole said: “Innovation to address biodiversity loss and to support the energy transition create significant opportunity for investors and these funds mobilise capital towards the companies driving measurable emissions reductions and protection to our ecosystems.”
In healthcare, the Redwheel Life Changing Treatments Fund, helmed by Peter Hughes, aims to improve patients’ lives, no matter where they live, by investing in companies that can deliver improved healthcare outcomes for patients without sacrificing investor returns in a post-pandemic landscape shaped by ongoing global demographic changes.
Holding between 40 and 60 companies, the fund will focus on identifying companies providing life-changing solutions to patients across three key areas: life-changing drugs, health system strengthening and life-changing care.
“There is an increasing burden on patients from factors including rising prevalence of chronic diseases and demographic trends,” said Hughes.
“Our fund provides a vehicle for investors to participate in, and potentially benefit from, companies at the forefront of meeting these challenges to extend lives and enhance wellbeing.”
According to Redwheel, interest in thematic funds has risen strongly in recent years, with thematic assets swelling to $992.5bn by the end of August. The firm said there is room for further growth as new markets evolve producing dispersion and esoteric opportunities for alpha generation.
Jane Nicholls, head of business development at Redwheel, said: “We see a significant growth opportunity in confronting critical global challenges and have added proven industry talent to create high-conviction strategies that can capture potentially attractive long-term returns for investors in these themes.”