London-based Alken, which oversees about 1.5 billion euros (US$1.5 billion; $2.13 billion) in total, is the latest example of an investment manager offering outsized ESG returns by betting on industries that aren’t generally associated with environmental, social or governance goals. Alken’s Sustainable Europe fund, which is registered in Luxembourg, qualifies as a so-called Article 8 product under European ESG rules, meaning it “promotes” sustainability.
An ESG fund run by Alken Asset Management has outperformed 98% of its peers over the past year after betting on European defense stocks while they were still cheap.
The Alken Fund Sustainable Europe (ALCSEU1 LX) is up about 9% in the period, compared with an average drop of roughly 9% among similar funds, according to data compiled by Bloomberg.
