The fund is an open-end mutual fund which seeks to achieve long-term capital appreciation.

Vert Asset Management, an environmental, social and governance investment manager based out of Sausalito, California, claims to have broken new ground by launching the Vert Global Sustainable Real Estate Fund, an open-end mutual fund which seeks to achieve long-term capital appreciation. 

The fund invests across the globe in publicly listed real estate investment trusts using evidence-based ESG metrics, the firm said. Vert said the fund is the first of its kind to offer a sustainable real estate fund to retail clients. 

The Vert Global Sustainable Real Estate Fund’s ESG research methodology integrates academic research, industry best practice, and third-party data to evaluate companies for sustainability. The portfolio will buy REITs that are committed to sustainability. The fund uses a long-term buy-and-hold strategy, and companies are held at approximately market cap weights to maintain diversification and reduce turnover.

The fund's rollout is part of a broader trend of wealth managers tapping into demand for ESG-themed investments that bring about certain results, such as cutting carbon output, cleaning up the environment and tackling poverty.

The fund is sub-advised by Dimensional Fund Advisors. Vert designed the fund strategy and oversees the eligible universe of securities, and Dimensional puts the strategy to work.

“Financial advisors are looking for more choices in ESG funds to round out their asset allocations. They’ve asked us for a pure real estate fund that meets their clients’ preference for sustainability. Vert’s mission is to make sustainable investing easier," Sam Adams, Vert chief executive and co-founder, said.