Bestinvest says
The Schroder Global Climate Change leverages off of Schroders' extensive worldwide analyst resources. This represents a distinct advantage for the fund managers over their competitors. The mandate of the fund also provides opportunities to outperform its competitors. This is because, although the majority of the fund invests in companies developing new technologies involved in climate change, it can also invest in stocks that will benefit from the problems that it creates. It therefore has exposure a wide variety of stocks including some of the more defensive sectors.
The Fund invested in companies involved in efforts to help lessen or adapt to the effects of climate change. The portfolio is based around five key themes: environmental resources, low carbon fossil fuels, energy efficiency, clean energy and sustainable transport.
The team, which includes climate change specialists as well as investment professionals, begin by reducing the investment universe to a smaller universe of stocks where they believe climate change will have a significant effect on the long term investment case. The portfolio is then constructed on a bottom up basis with stocks selected on a 12-24 month view - the managers anticipate a 2 year average holding period. The managers benefit from input from outside the climate change team where other areas of Schroders have specialist knowledge, such as small cap, energy, agriculture and commodities.