Green Finance Institute’s Post

Exciting news from the UK Government! Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds have announced the creation of a new National Wealth Fund to drive investment in future industries. Key institutions like the UK Infrastructure Bank and British Business Bank will align under this fund, unlocking billions in private investment and boosting economic growth. A Taskforce chaired by the Green Finance Institute, including industry leaders like former Bank of England Governor Mark Carney and Aviva CEO Amanda Blanc, will guide this initiative. With an additional £7.3bn funding, immediate investments will target priority sectors to accelerate the UK's green and growth industries. Reeves emphasizes the urgency of economic reform, stating the new fund will fix the economy’s foundations and make Britain better off. Energy Secretary Ed Miliband highlights the creation of thousands of clean energy jobs and enhanced energy independence. This bold step signals Britain’s openness for business and commitment to a sustainable, prosperous future. #UKGrowth #NationalWealthFund #Investment #GreenEconomy https://lnkd.in/gfinQWJH

The UK government announced its National Wealth Fund on Tuesday, aiming to raise more than £20bn from the private sector to fund the UK’s transition to a low-carbon economy. The Green Finance Institute is chairing a task force, with members from across financial services, to advise policymakers on the fund. “All the major financial institutions have their own net zero targets, but we know there are sometimes policy issues that get in the way of investment moving at the scale and speed we need to see, so this is very much what the NWF is set up to do,” Rhian-Mari Thomas OBE, chair of the task force and chief executive of the Green Finance Institute, tells Sustainable Views. Read more below. #UKnationalwealthfund #greenfinance #energytransition https://lnkd.in/g6Sj4_hN

Another important announcement today: £7.3 billion in additional funding has been announced for the new #NationalWealthFund, which should help unlock private investment in new technologies, such as hydrogen and green steel. Chancellor Rachel Reeves and the Business Secretary, Jonathan Reynolds, have instructed officials to immediately begin work to align the UK Infrastructure Bank and the British Business Bank under a new National Wealth Fund that will invest in the new industries of the future. Under the government’s new plans, the National Wealth Fund will bring together key institutions and create a compelling proposition for investors. This will mobilise billions more in private investment and generate a return for taxpayers. £7.3bn of additional funding will be allocated through the UK Infrastructure Bank so investments can start immediately, focusing on further priority sectors and catalysing private investment at an even greater scale. This £7.3bn funding is in addition to existing UKIB funding. As part of the National Wealth Fund, reforms will be made to the British Business Bank, which is overseen by the Department for Business and Trade, to ensure it can mobilise the UK’s institutional capital and unlock billions of pounds of investment in the UK’s world-leading green and growth industries. Read more here: https://lnkd.in/eb4zH2Pf

It was great to contribute (in a small way) to the advisory report that helped guide the design of the UK's new National Wealth Fund. Critical that the governance and funding tools for the NWF crowd-in private ££, as public ££ will always be limited. But if we get that right, could be a real game-changer in attracting the green supply chains of the future into the UK. Could also be the cornerstone of a more front-footed approach to regional economic growth. https://lnkd.in/e2cB5T6S

NFO: The reasons behind the distress facing parts of the investment trust universe 🍃 are more complex than solely cost disclosures alone, as suggested by other commentators. Recall that Rates and WACC were upended through 2022 and 2023. Capital entrenched and retreated. Duration was on the rise and the financial, mezzanine and gearing of trusts struggled in a challenging period of Refi. Recall the Green IT sector like Green private markets had been at the expensive end irrespective of what cost template you choose to apply. Reflecting the capital intensive and specialist nature of Green infrastructure etc. Strong demand pre 22 or IPOs were not quelled by those higher costs. Thus to what extent did cost disclosures stymie investment against other factors? Hard to say imo. That doesn’t make a great headline. However, uneven PRIIPs cost disclosure was almost most certainly a contributing factor to the current woes in promoting ITs to DFMs and multi-managers. ⚠️ Meanwhile investment into such complex and innovative sectors are best achieved through Institutional rather than Retail investment. Particularly given the moves to deregulate ITs. Therefore let the City analyse and manage the duration and P&L risks through; DFMs, banks, pension schemes and asset managers rather than expose direct individual investors. Moreover let’s scale-up, (*prudently) to promote U.K. 🇬🇧 investment, economy and a just green transition. #newfundorder The Association of Investment Companies (AIC) Financial Conduct Authority HM Treasury Transparency Task Force Global Ethical Finance Initiative (GEFI) Financial Times https://lnkd.in/ezk75dkk

NFO: Good to see cost 💲 reform of closed-ended investment companies finally come through. Ros and I certainly have not agreed on everything on this issue (!) and I am acutely aware that I was also swimming against the consensus City rip-curl. 🌊 The outcome: If ITs set aside PRIIPs and EMT templates then they may defer back to something resembling a transactional cost basis. Potentially all MiFIR and AIFMR will be set aside too. As such, they will 💯 optically appear much cheaper when held in MPS, fund of funds and consequently more attractive etc. This now creates an investable cost arbitrage in the DFM, pension, platform and wholesale market. With it, for open-ended fund vendors, the advantage has pivoted away from them in the DFM space. I have long held a view that ITs are best invested by professional fund investors not D2C. That view remains today. Meanwhile the regulation of ITs remains light-touch, sans FOS or FSCS protections, as the battleground for retail and pension assets has just begun, which I pointed to for IFA Magazine 👇 🤔 Fascinating times. Risk managers, committees and allocators, suggest mark this moment. ⏰ https://lnkd.in/e4XNeGAC Transparency Task Force Financial Conduct Authority Association of Professional Fund Investors (APFI) Fundscape the lang cat 🔔 #newfundorder Ben Conway Robin Powell Henry Cobbe, CFA Abraham Okusanya Rory Maguire #permittedlinks #multimanager Simon Evan-Cook Mikkel Bates Annabel Brodie-Smith The Association of Investment Companies (AIC)

Invest today (29 February) and start accruing interest from tomorrow, whilst positively changing lives in Cornwall through supported housing. Don’t miss out on this opportunity to make a real difference – learn more and invest today at: https://lnkd.in/ejSaBPx2 This investment is not regulated by the FCA, nor covered by the Financial Services Compensation Scheme (FSCS) nor the Financial Ombudsman Service (FOR). The investment is not readily realisable, which means it may be difficult to sell and you may get back less than you originally invested, and returns are not guaranteed. #cornwall #socialimpactinvesting #impactinvesting #socialimpact #investmentopportunities #supportedhousing #housingcrisis

Financial Times reports on Rt Hon Rachel Reeves's launch of the UK National Wealth Fund (#UKnwf). While the Bloomberg analysis accurately flags the shortfall, as much as £57bn is required to meet 2030 goals, the announcement should be welcomed. The calm experience of Mark Carney is indeed a positive, and the government can take key learnings from the failure of the 2012 #greeninvestmentbank, which include lack of funds, ambition and being hemmed into low-risk, low-ambition sectors, much a result of the coalition politics. The focus and concern should be on the sectors agreed upon for capital allocation, which appears to be confined to large MNCs. To decarbonise and innovate, the #uknwf should focus on derisking decarbonisation down the supply chain to tier 2 and 3 companies. This is where employment, skills, and multiplier returns will come from. The #uknwf should not be frightened of taking equity stakes and creating JV opportunities between public and private capital. If going broad, #sustainablelinkedbonds have been used across #europe for a government-led investment in #lowcarbon #infrasturcture #health and even #education.

🌟Exciting news! The UK government is taking a major step to boost private investment with the creation of a new National Wealth Fund. This initiative aims to unlock opportunities for businesses and drive economic growth across the country. #NationalWealthFund #PrivateInvestment #EconomicGrowth Check out the details on how this will work via the GOV.UK website. Let's keep building a strong, thriving economy together! https://ift.tt/dVyLTx7

PROFIT-to-member superannuation funds Rest is diversifying its #industrialproperty allocations with a landmark investment in a #realestate #climateimpact fund. #sustainability #decarbonisation #cleanenergy #renewableenergy #climatechange