Octopus Investments, part of Octopus Group, today announces the launch of the FP Octopus UK Future Generations Fund, which will invest in businesses that are working hard to tackle some of the world’s greatest challenges with the goal of creating a more sustainable future for our planet and people. These include climate change, revitalising healthcare industries, and empowering people using digital infrastructure.
Building on Octopus’ strong track record investing across the market cap spectrum, the fund will take a multi cap approach, providing patient capital to deliver long term growth. Octopus has a long-established team with a demonstrable track record of impressive returns, investing throughout the market cap scale, from £10 million to over £100 billion in market cap.
10% of the annual management charge will be donated to Octopus Giving, the charitable foundation set up by Octopus in 2014, which supports UK based charities addressing the same challenges.
The fund will be managed by Dominic Weller, a Citywire AA rated manager. Dominic is a member of the Responsible Investment Committee at Octopus and has helped shape the company’s approach to sustainable investing. Richard Power and Chris McVey, who are the lead managers for the FP Octopus UK Micro Cap Growth Fund and the FP Octopus UK Multi Cap Income Fund respectively, will be co-managers. Dominic is also a co-manager of both these funds1.
It’s the first retail fund from Octopus that has launched with a sustainable investment mandate since the business was founded in 2000. It will take advantage of Octopus’ expertise as one of the UK’s leading investors in smaller companies to provide support to these businesses which are urgently in need of capital, while having the opportunity to invest across the full UK market spectrum.
Commenting on the launch, Dominic Weller, said:
“So far, most of the ESG and sustainability focused funds to launch have shown a bias towards investing in larger companies. Limited and flawed ESG data especially on smaller companies exacerbates this problem and has led to many funds avoiding companies which do not tick the right boxes altogether. This is a missed opportunity.
“We want to give our investors an opportunity to help shape the future of our world by providing much needed capital to great companies that are looking to make a positive contribution by addressing problems for our and future generations. It’s also critical that investors better understand the companies they are invested in, as this will help unlock more patient capital for those companies that really need it.
“By investing in these exceptional businesses, we believe we can achieve long-term capital growth for investors within a sustainable and transparent framework that aligns with UN Sustainable Development Goals.
“Octopus has long-established expertise in finding attractive businesses with strong fundamentals, regardless of their size. We think this gives us a good a platform to deliver value for our investors while also allowing them to make a real difference with their money.”
Octopus will undertake its own research and the fund will help fill the gap by backing innovating companies whose activities align with the United Nations Sustainable Development Goals. These companies will look to solve problems within one of three sustainability themes, which Octopus believes address some of the world’s most urgent issues for current and future generations.
The three sustainability themes for the Fund:
- ‘Building a sustainable planet’ – tackling the climate emergency by investing in and supporting companies at the forefront of clean energy & sustainable consumption.
- ‘Empowering people’ – investing in business which reimagine the future, innovate and make a difference in people’s daily lives.
- ‘Revitalising healthcare’ – improving the health and wellbeing of people around the world by investing in modern healthcare industries.
To make it easier for investors to understand the actions of the investee companies, this fund will provide transparent and easy to understand data as well a comprehensive annual report, detailing the positive contributions that companies within the portfolio are making.
The offer period for the new Fund is now open, with an annual management charge (AMC) of 0.85%, and an ongoing charges figure (OCF) of 1.50%.
-Ends-
Notes to editors:
[1] Dominic Weller is co-manager of the FP Octopus UK Micro Cap Growth Fund, FP Octopus UK Multi Cap Income Fund, Octopus AIM VCT plc, Octopus AIM VCT 2 plc, and is on the Octopus Quoted Companies investment committee.
For journalists in their professional capacity only. The value of an investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest. Past performance is not a reliable indicator of future results. Personal opinions may change and should not be seen as advice or a recommendation. This is not investment or tax advice. We recommend investors seek professional advice before deciding to invest. Investments listed on AIM are likely to fall and rise in value more than shares listed on the main market of the London Stock Exchange. The value of an investment and any income from it, can fall as well as rise. Investors may not get back the full amount invested. The shares of smaller companies could fall or rise in value more than other shares listed on the main market of the London Stock Exchange. These shares may also be harder to sell. Fees will be deducted from capital which will increase the amount of income available for distribution. However, this will erode capital and may hinder capital growth. The ACD of the FP Octopus UK Future Generations Fund is FundRock Partners Ltd which is authorised and regulated by the Financial Conduct Authority no. 469278, Registered Office: Cedar House, 3 Cedar Park, Cobham Road, Wimborne, Dorset BH21 7SB. Investors should read the Prospectus, the Key Investor Information Document (KIID) and the Supplementary Information Document (SID) before investing as they contain important information regarding the fund, including charges, tax and fund specific risk warnings and will form the basis of any investment. The Prospectus, KIID, SID and application forms are available in English at octopusinvestments.com. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 03942880. Issued: September 2021.