Virgin Money Climate Change Fund
Make a difference with the Virgin Money Climate Change Fund
We all know that we need to combat the causes of climate change, but it’s difficult to make a big difference on your own. That’s why we came up with the Virgin Money Climate Change Fund where you can choose to invest in businesses that are making the right decisions for the environment. Here are just some of the reasons to choose this fund.
Global warming and climate change have been on the political agenda for a long time, but it’s pressure on business that can really begin to make a change. The Virgin Money Climate Change Fund invests in companies that show a good potential for profit alongside a sound commitment to the environment. We look at the high performers and then filter out the companies that don’t measure up to our benchmark for global climate change, so only those with good environmental credentials make it into our portfolio.
Climate change facts
According to UK Government climate change statistics, the Earth has warmed by 0.74°C over the last 100 years. An alarming 0.4°C of this climate change has occurred since the 1970s. The main contributor is of course, human activity. As the cost of this environmental pollution mounts up, our expectation is that regulators and legislators will start to force companies to foot the bill. This will give a competitive edge to businesses with a lighter environmental footprint, which the Virgin Money Climate Change Fund is well positioned to take advantage of.
Choosing a ‘green’ fund
It’s an unfortunate fact that many ‘green’ funds do not perform well for their investors. The environmental credentials inevitably exclude some of the most profitable sectors, such as gas and oil. But unlike other ‘green’ funds, the Virgin Money Climate Change Fund invests in all sectors, cherry picking those with a lighter than average environmental footprint as well as those providing climate change solutions. Read more information about our different approach.
Helping businesses to help the environment
By supporting the companies that adopt greener solutions we can show that addressing the potential impacts of climate change is best for their financial future, as well as our planet. Learn more about how the Virgin Money Climate Change Fund works and see how you can invest in high performing companies while helping to protect the planet.
As most of the companies included in our climate change fund are based in the UK and Europe, many are affected by the UK’s climate change levy. This is a tax on business consumption of energy. At Virgin Money, we agree that businesses should be persuaded to reduce their carbon footprint. We think that only investing in companies with above average environmental credentials is the ‘carrot’ to the Government’s ‘stick’.
Solution adopters and providers
Up to 25% of the fund is invested in what we call ‘solution adopters’ and ‘solution providers’. Solution adopters are companies leading by example in their fields, actively seeking out new ways to lower their environmental footprint. Solution providers are companies developing and manufacturing solutions to environmental problems, including alternative energy sources.
Choosing the right ISA for you
We’ve told you all about our climate change fund here, but it’s not your only Virgin Money investment option. If you like the idea of investing with Virgin Money but haven’t yet made your final choice, then you can read about your other fund options. If you’ve already used your ISA allowance, you could take a look at the unit trusts we offer.
Investing in stopping climate change
The Virgin Money Climate Change Fund is perfect for an investor who wants to tap into profit growth, while helping to stop environmental climate change. You can apply online for a Virgin Money ISA and start making your money work for you, and the environment.
Investing in the stock market is riskier than other ways of saving such as a deposit account. Your money can go up and down in value and your returns are not guaranteed. You may not get back all you invest. This is a medium to long term investment so you should be prepared to invest your money for at least five years. The value of the tax benefit depends on individual circumstances and may change in the future. A copy of the full prospectus is available on request.