Rathbones Ethical Bond Fund – April 2021
For our monthly Fund in Focus section we have selected a component fund of our ESG Investment Strategy – the Rathbones Ethical Bond Fund. This fund aims to deliver both income and growth on a consistent basis to its investors. The fund also applies strict ESG criteria to the bonds it purchases focuses solely on bonds issued by companies who measure up to the required standards. Thirdly, the Fund aims to deliver a greater total return than its benchmark, the Investment Association (IA) Sterling Corporate Bond sector over any rolling five-year period. The fund has been successful on all three counts and has consistently outperformed its benchmark over the past ten years.
- The fund is a traditional socially responsible investment fund.
- Experience of managing ethically screened private-client investment business.
- Engagement, governance, and stewardship managed by a central governance committee.
- Open and transparent ethical criteria and reporting lines.
- The fund targets an investment grade high yield with a strong ethical overlay.
- Quarterly pay-out of income.
To make sure that investments are suitable, the fund manager has access to Rathbones’ dedicated ethical, sustainable and impact research team. Together, this actively managed fund applies ethical screens to assess potential investments; having confidence that long-term growth can be achieved by companies which conduct their business and apply capital responsibly.
The fund has been a consistent outperformer over the past few years but particularly so over the past year. The fund offers a very broad global exposure to the ESG opportunity and is a very appropriate core bond holding in client pension and investment portfolios.
Schroder Sustainable Growth Fund – March 2021
For our monthly Fund in Focus we have highlighted one of the funds in our ESG Investment Strategy. The Schroder Sustainable Growth Fund aims to provide capital growth by investing in equities of companies worldwide which meet the investment manager’s sustainability criteria which include the following:
- managing the business for the long-term
- recognising the company’s responsibilities to its customers, employees, and suppliers
- respecting the environment
In addition, the investment manager believes that when aligned with other drivers of growth, this can result in earnings stronger growth which is often under appreciated by the market. Issues such as climate change, environmental performance, labour standards, or board composition that could impact a company’s value will be considered in the assessment of companies.
The fund has been a consistent outperformer over the past few years but particularly so over the past year. The fund offers a very broad global exposure to the ESG opportunity and should be a core equity holding in client pension and investment portfolios
2X Midcap Library Fund – Feb 2021
The 2X Ideas Midcap Library fund is a Swiss based actively managed global equity fund which targets companies with valuations between US$2 – 30 billion. The management style is highly research driven, seeking out companies around the globe with very strong positions in their own market niches and with the potential to deliver growth well above the average over the long term, largely independent of economic cycles. While none of the 100 companies held by the fund could be regarded as small companies, the majority are not household names with the result that the investor is being given an exposure to growth opportunities not commonly found in other global equity funds. The investment approach taken by the fund has proven itself against the market over the last number of years. *2xideas vs MSCI World Perf. 1- year graph
NextEnergy Solar Fund Limited
- UK’s largest solar farm operator
- 90 separate acquisitions of solar projects
- Market capitalisation £630 million
- Annual dividend yield c.6% (paid quarterly)
- Gross return of 45% over past 5 years
‘Every hour the world receives enough energy from the sun to power the entire planet for a year’.
NextEnergy Solar Fund Limited (NESF) is a solar infrastructure investment company primarily focused on the UK. As at 30 September 2020 the Company has completed 90 separate acquisitions of solar projects with total capacity installed of 755MW and total invested capital of approximately £950m. The company’s solar farms are almost all UK-based although it does own a small number of installations in Southern Italy and is seeking further opportunities outside of the UK. The Company has an investment limit of up to 30% of the Company’s gross asset value (GAV) in solar assets outside the UK. Currently, the non-UK investment represents 12% of GAV.
NESF’s investment objective is to provide ordinary shareholders with attractive risk adjusted returns, principally in the form of regular dividends, by investing in a diversified portfolio of primarily UK-based solar energy infrastructure assets. As a result, returns to shareholders are primarily in the form of annual dividends rather than capital growth. Based on its current profile of investments, we the income is secured for a long time to come. The company should also be a beneficiary of the UK Governments new ‘Ten Point Plan for a Green Industrial Revolution’ The company’s shares are listed on the London Stock Exchange and are freely tradeable.
NESF invests with a view to holding its solar assets until the end of their useful life. NESF are committed to all ESG (Environmental, Social and Governance) principles and responsible investment. They are on a mission to generate a more sustainable future by leading the transition to using more clean energy. They believe that solar is the key technology for the transition away from fossil fuels towards a greener economy. By generating clean energy, NESF avoid 307,500 tonnes of CO2 emissions per annum while powering homes sustainably. Their ESG policy re-enhances their commitment to tackling climate change. You can read further into NESF’s ESG policy online at www.nextenergysolarfund.com/esg
*Source – Financial Express
Guardcap Global Equity Strategy
Fund Size €1.46 billion
Trading Currency Euro
For this Fund in Focus, we have selected the Guardcap Global Equity Strategy, which has been a longstanding core pick for our clients looking to gain exposure to global equities. This fund is a concentrated, bottom-up strategy, managed by GuardCap Asset Management, a specialist firm located in London, which is part of the Guardian Capital Group. The GuardCap Global Equity team is distinguished by its highly focused long-term thinking, which enables its strategies to harness a sustained long term outperformance against global equity markets.
The fund seeks to invest in companies with strong balance sheets and who offer the genuine prospect of delivering long term growth. For Guardcap’ managers, very few companies meet their exacting criteria. This no compromise attitude towards stock picking is backed by a highly rigorous and detailed investment process, with in-depth written reports and models prepared on each company considered for inclusion. The net result is a highly concentrated strategy offering unique exposure to the potential arising from sustainable, long-term growth companies. Most importantly, it has been a consistent outperformer over a long period. The fund size is €1.46 billion and holds c.25 stocks.
Geographic and Sectoral Exposures
The fund has been a consistent outperformer over a sustained period and while the price fell sharply in March 2020 along with equity assets across the globe, it recovered very quickly and ahead of world markets.
Updated – August 2020
This marketing information has been provided for discussion purposes only. It is not advice and does not take into account the investment needs and objectives, financial position, risk attitude, liquidity needs, capital security needs and/or capacity for loss of any particular person. It should not be relied upon to make investment decisions.
Warning: The figures refer to the past. Past performance is not a reliable indicator of future results.
Warning: The return may increase or decrease as a result of currency fluctuations.
Warning: If you invest in this product you may lose some or all of the money you invest.