A US large-cap equity fund, which incorporates sustainability screening.
Prices as at 10 Aug 2022.
Fund commentary last updated 19 Jul 2022.
Past performance is not an indication of future performance.
Capital at risk.
|Standard Initial Charge||0%|
|Initial Charge Via BestInvest||0%|
|Additional Bid/Offer Spread||0%|
|Annual Management Charge||0.75%|
|Ongoing Charges Figure||0.86%|
The managers have developed a distinctive bottom-up fundamental research methodology, focused on finding companies at the intersection of positive fundamental and sustainable business drivers. The investment process has five steps. It begins with the generation of ideas from an investable universe of over 1,000 companies listed on US exchanges with a market value of over $2billion. The stocks also need to pass a screening process which excludes companies that derive most of their revenues from alcohol, gambling, pornography, tobacco, military equipment, fossil fuels or that use animal testing for non-medical purposes or do not exhibit strong ethical policies and practices. The managers generally seek companies with durable business models whose historic earnings growth exceeds that of the benchmark. Around 80 new ideas are approved for more detailed research every year. The second step is detailed due diligence, where the managers and analysts assess the fundamental risks of a company. They look for experienced management teams, companies with competitive business advantages, strong balance sheets and recurring revenues such as long-term contracts. The third step is the decision process with between 20 and 30 companies being taken forward for group discussion. The range in the company’s valuation model between best and worst case versus the current share price guides the final portfolio decisions. This, the team believes, mitigates emotions from investment decisions. The fourth step is portfolio management with typical position sizes of between 1 to 5%. Most holdings have a market cap over $100billion. The fifth and final step is the ongoing monitoring and sell discipline. There are four main reasons to sell holdings: growth drivers which do not materialise or a strategy or management change; breakdown of sustainability advantages or ESG risks appearing; valuation becoming excessive; and alternative opportunities offering more compelling growth. Generally, up to 10 new positions per year are added to the portfolio.
Past performance is not a guide to future performance. View full risk warning