fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

BMO Responsible Global Equity 2

A global equity fund investing in companies making a positive contribution to society and the environment.

  • 135.00p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 514.50p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.80%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.60%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 17 February 2020, fund data last updated 19 December 2019

The fund aims to provide capital growth by investing in an ethically screened and diversified portfolio of global equities. Manager Jamie Jenkins seeks to invest in companies making a positive contribution to society and the environment, while avoiding investment in companies with damaging or unsustainable business practices. To do this he uses both negative and positive screening, with "invest, avoid and improve" the key philosophy. The fund has a style bias towards quality growth stocks.

Fund summary

Sector Global
Structure OEIC
Launched August, 2003
Size £647m
Yield 0.60%
Charging basis Income
Dividends paid 31 Jan, 31 Jul

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.80%

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Investment process

The fund has a five stage investment process, which sees the global universe filtered from 5,000 stocks to 40-60 in the final portfolio. Stage one is idea generation, which is derived from company meetings, industry conferences, sector/theme research and ESG research by the BMO investment team. Approximately 1,000 stocks are taken to stage two which is sustainability screening - positive and negative. This work is largely done by BMO's large Responsible Investment team and the Advisory Council. Stocks that make it through the screens are placed on the watch list of approximately 100 stocks, which undergo in-depth company and valuation analysis before being considered for portfolio inclusion. Stage four is portfolio construction, which is primarily the responsibility of Jamie Jenkins, who seeks to blend and diversify risks when weighting the final portfolio. A high quality and undervalued stock in the opinion of the manager will tend to have a weighting of 2.5-5.0%. A fair valued, high quality company will have a weight of 1-2.5%. Stage five of the investment process is active ownership and reporting, which is the responsibility of the portfolio managers and the responsible investment teams.

Portfolio construction is the responsibility of Jamie Jenkins, who is the Co-Head of the BMO Global Equities team. ESG research is the responsibility of the large Responsible Investment (RI) team and the fund is overseen by an advisory council, whose President is the Archbishop of Canterbury and meets on a quarterly basis. The manager has a bottom-up approach as with most actively managed ethical funds, but the fund is more closely correlated to the MSCI World benchmark than a number of global ESG funds. Fund performance has been positive since we added the fund to Tilney's Buy List, with top quartile performance across most periods. We would describe the fund as mid-green, but as always encourage investors to read the ethical criteria before investing.

Manager research

Average monthly relative returns

  • 15/16 -0.81%
  • 16/17 0.31%
  • 17/18 -0.50%
  • 18/19 0.01%
  • 19/20 -0.20%

Bestinvest MRI

  • 3 years -0.23%
  • 5 years -0.24%
  • Career -0.17%
  • 3 years 50.00%
  • 5 years 50.00%
  • Career 44.80%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Jamie Jenkins

Jenkins is Head of the Responsible Global Equities team at BMO. He joined the firm in 2000 and is co-manager of the BMO. Responsible Global Equity Fund. Prior to joining the firm, Jenkins worked at Hill Samuel Asset Management as a Japanese Equities Fund Manager. He holds an MA in History from the University of Edinburgh, has IMC and IIMR qualifications and is a member of the CFA Society of the UK.

Track record

Jamie Jenkins has 10.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.17%. During the worst period of relative performance (from December 2006 - August 2014) there was a decline of 23% relative to the index. The worst absolute loss has been 39%.

Periods of worst performance

Absolute -39.00% (March 2006 - February 2009)
Relative -23.00% (December 2006 - August 2014)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 October 2019

4.8% Apple Inc
4.8% Microsoft Corp
3.9% Mastercard Inc
3.3% Linde Ag
2.9% Thermo Fisher Scientific Inc
2.9% Xylem Inc
2.7% Accenture Plc
2.5% Crown Castle International Corp
2.5% Prudential Plc
2.5% Taiwan Semiconductor Co
Source: Trustnet

Sector breakdown

Information Technology 26.00%
Health Care 18.00%
Financials 17.00%
Industrials 16.00%
Consumer Discretionary 10.00%
Materials 6.00%
Real Estate 2.00%
Consumer Staples 2.00%
Money Market 1.00%
Utilities 1.00%

Portfolio

High conviction portfolio of 40 to 60 stocks. 50 is normal.

Constraints

Typical max 5% in large cap stocks, 3% in small caps. Regional weights typically within +/-10% relative to the index.

Key Investor Information - Income

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Key Investor Information - Accumulation

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