VIRGIN CLIMATE CHANGE - Fund overview

Portfolio

• Asset Allocation
• Equity Geographic
• Equity Capitalisation

Allocation		Proportion
	Equity	92%
	High yield bonds	–
	Quality bonds	–
	Property	–
	Commodities	0%
	Hedge	–
	Fund cash	8%

Allocation		Proportion
	UK	29%
	Europe	71%
	Nth America	–
	Japan	–
	Pacific	–
	Other Equity	–

Allocation		Proportion
	Large Caps	53%
	Mid Caps	33%
	Small Caps	14%

View all performance data for VIRGIN CLIMATE CHANGE

Investment process

This green fund invests in Europe including the UK and targets an environmental footprint 30-50% below that of the MSCI Europe. Management is outsourced to GLG and is based on the GLG Environment fund, itself a filtered version of their European Equity fund. The fund ranks stocks in each sector according to their environmental impact, calculated using over 700 factors supplied by environmental research organisation Trucost - these include greenhouse gas emissions, water use and waste production. The GLG European Equity portfolio is then screened to exclude those stocks whose environmental footprint is greater than the average for their sector. GLG believe legislation will ultimately force companies to pay for environmental damage but that these costs are not currently reflected in their share prices, meaning that the lighter footprint stocks remaining in the portfolio are undervalued. These stocks will make up 75% – 100% of the fund's overall portfolio.
The fund may also invest up to 15% in "solution adopters" - companies taking a lead in their industries in looking at ways to reduce their environmental footprint. Finally, up to 10% may be invested in "solution providers": companies developing solutions to environmental problems such as alternative energy - this is the smallest part of the portfolio due to the stocks' risky nature.