Invests in continental European equities screened for social and environmental responsibility.
Prices as at 12 Aug 2022.
Fund commentary last updated 03 Dec 2021.
Past performance is not an indication of future performance.
Capital at risk.
|Sector||Europe Excluding UK|
|Dividends paid||Acc units only|
|Standard Initial Charge||0%|
|Initial Charge Via BestInvest||0%|
|Additional Bid/Offer Spread||0%|
|Annual Management Charge||0.75%|
|Ongoing Charges Figure||0.9%|
The investment process begins by identifying whether a company is aligned with sustainable themes including resource efficiency and a healthier & higher quality of life. The Sustainable Futures sustainability matrix is then used by managers Martyn Jones and Peter Michaelis to look at a company’s quality of management and the policies and practices they have put in place for managing its ESG risks. Companies are given a score between one – the best result they can receive - and five. The team also consider the sustainability of a company’s products/services. An A rating means the company contributes to sustainable development such as renewable energy whilst an E rating would be tobacco stocks. Those firms with a C3 score or higher are considered for portfolio inclusion. The managers then take a bottom-up analysis of a company’s business fundamentals such as a high barrier to entry and recurring revenues. In the next stage they look at valuations, measuring companies on free cash flow, return on equity and sales growth. They use historic multiples to create a three-year future predicted stock value. This leaves around 100 to 150 stocks for portfolio construction. The managers select 40-60 stocks of these, aiming to gives the portfolio diversification across sectors, regions, and growth themes. The portfolio is reviewed by an independent advisory committee, which meets at least three times a year to monitor its social and environmental impact.
Past performance is not a guide to future performance. View full risk warning