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!

FP WHEB Sustainability C

Global sustainable equity fund, which is fossil fuel free.

  • 176.76p
    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.

  • 241.23p
    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!

  • 0.85%
    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).

  • 1.06%
    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.

  • 0.80%
    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 24 December 2019

The objective of the fund is long-term capital growth via a portfolio of global companies, which have strong growth prospects linked to key sustainability growth themes. The nine themes WHEB seek broad exposure to are environmental services, resource efficiency, water management, sustainable transport, cleaner energy, safety, health, well-being, and education. The fund has a growth style, and typically has a bias to mid-caps and to the US. The fund has a predominantly positive screening focus, but will also exclude all “sin” sectors i.e. alcohol, tobacco, gambling, pornography, weapons. It also fossil fuel free.

Fund summary

Sector Global
Structure OEIC
Launched September, 2012
Size £385m
Yield 0.80%
Charging basis Income
Dividends paid 28 Feb

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.85%
Ongoing charges figure 1.06%

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Investment process

The investment process has three stages. Stage one applies quantitative sustainability screens i.e. looking for sustainable growth potential via the key themes. At least one third of a company’s business must come from one or more of the nine themes that are providing solutions to environmental and/or social challenges. This leaves around 1000 stocks in the thematic universe (20% of the MSCI World), of which WHEB have covered roughly 500 in depth. Stage two is the more detailed analysis of company quality and valuation (GARP). The approach sees ESG factors integrated to help determine whether a company is “quality”. The ESG factors include positive impact, reputation, innovation, ethics & governance, sustainability of earnings and opportunities. These factors sit alongside the more traditional analysis of market attractiveness (barriers to entry, stage of the cycle, growth potential), competitive position (pricing power, market share, margins), value chain (buyer and supplier power, cost controls, working capital), management quality (reputation and track record) and growth strategy (M&A, product development). For valuations, the team mainly look at ROE, EV/EBITDA and cash flow yield. Stage three is portfolio construction. The manager grades stocks A, B and C, with A stocks having 2% weights in the portfolio. The team look for broad exposure across themes, but can zero weight a theme and will not have more than 30% in a single theme. An independent Advisory Committee reviews the portfolio holdings each quarter to ensure policies are being adhered to.

WHEB is a boutique that specialises in sustainable investing. It focuses on companies offering solutions to sustainability challenges, not just those with good corporate social responsibility reports. The team believe that sustainability themes and the ESG profile of a company are key to determining the quality of the business and its growth potential. An independent Advisory Committee reviews the portfolio holdings each quarter to ensure policies are adhered to. We would describe the ESG screening criteria as dark green i.e. relatively strict. As a consequence, performance is likely to differ from that of the MSCI World index.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.08%
  • 17/18 0.00%
  • 18/19 -0.27%
  • 19/20 -0.48%

Bestinvest MRI

  • 3 years -0.25%
  • 5 years 0.00%
  • Career -0.25%
  • 3 years 28.40%
  • 5 years 0.00%
  • Career 27.80%

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

Ted Franks

Franks helped found WHEB in 2009. He was a member of the original team that launched the WHEB Sustainability strategy in June 2009, becoming lead manager in 2015. Before joining WHEB, Franks was a sector specialist in the renewable energy and utilities sectors at Dresdner Kleinwort and KPMG. He is a Chartered Financial Analyst and a Chartered Accountant, has a degree in Philosophy and Economics from Bristol University and a Postgraduate Diploma in Law from Bristol Legal Institute.

Track record

Ted Franks has 4.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.25%. During the worst period of relative performance (from June 2015 - September 2019) there was a decline of 13% relative to the index. The worst absolute loss has been 15%.

Periods of worst performance

Absolute -15.00% (August 2018 - December 2018)
Relative -13.00% (June 2015 - September 2019)

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 30 November 2019

2.68% Ansys Inc
2.68% Msa Safety
2.65% Icon Ab
2.61% Agilent Technologies Inc
2.6% Varian Medical Systems Inc
2.58% Roper Technologies Inc
2.56% Centene Corp(Del)
2.56% Grand Canyon Education Inc Ord
2.53% Xylem Inc
2.52% Danaher Corp
Source: Trustnet

Sector breakdown

Health Care 30.00%
Resources 25.00%
Transport 11.00%
Services 8.00%
Water 7.00%
Safety & Security Services 6.00%
Others 5.00%
Alternative & Renewable Energy 4.00%
Education 3.00%
Money Market 1.00%

Portfolio

40-60 holdings. Tracking error range 4-7%. Average holding period 4-7 years. High active share - normally >95%.

Constraints

Max 30% per theme. 5% stock limit.

Key Investor Information - Income

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Key Investor Information - Accumulation

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