European asset management platform Mediolanum International Funds Limited (MIFL) has bolstered its ESG offering with a new global impact strategy.

The Mediolanum Best Brands Global Impact Fund targets long-term capital growth, investing in a diversified portfolio of global equity securities through an active multi-manager approach. It will aim to achieve this while contributing towards a more sustainable world, and will select stocks with products and services that are providing solutions to global challenges.

This is in contrast to merely backing companies that adopt responsible business practices, or simply excluding companies that are doing harm.

Initially, Baillie Gifford and Federated Hermes will manage the fund.

Both firms have extensive expertise in impact investing, providing exposure across impact themes and sustainable development goals on top of geographic, capitalisation and sector diversification.

In order to deliver positive change, Mediolanum has established four impact themes that help the team articulate how companies are addressing global challenges:

1. Social inclusion and education

2. Environment and resource meeds

3. Healthcare and quality of ife

4. Base of the pyramid (addressing the needs of the poorest four billion people in the world).

Christophe Jaubert, chief investment officer and head of research multi-management at MIFL said: “The ultimate objective of this fund is to make a positive difference, both for our clients and the society as-a-whole by combining impact investment with our fiduciary duty to deliver attractive, long term risk adjusted returns. We are continuously looking to provide our clients with optimal and diversified portfolios that capture the best sustainable returns opportunities, and this represents an evolution of existing market-leading funds.”