Bestinvest says
The combination of an environmental investment policy and a socially responsible investing (SRI) filter means that the fund suits both green and ethical investors. Fund manager Charlie Thomas has a background in the area, both in the investment world and previously in industry. He benefits from a strong team around him, Jupiter having been running green and SRI funds for over 25 years.
The fund targets companies that are providing solutions to environmental and social problems via six themes: Clean Energy; Water Management; Green Transport; Waste Management; Sustainable Living, and Environmental Services. To this end the team maintains a proprietary database of around 1000 companies that fit these themes. Stock selection is almost entirely bottom-up with no asset allocation amongst the themes, though there will always be some exposure to each for diversity. Despite the environmental restrictions the manager stresses the importance of investment performance, targeting profitable companies with significant growth rates. Once acquired companies are held for the long term, on average 3 to 5 years.
The fund also has ethical restrictions, and excludes companies not on an in-house approved ethical list or which derive more than 10% of turnover from: Armaments; Alcohol; Gambling; Nuclear Power; Pornography; Tobacco; Cosmetic companies that conduct animal testing. However, given the environmental focus such companies are unlikely to enter the investment universe.