The fund will allocate between equities and bonds of companies globally, and will target those companies that demonstrate their leadership in social and environmental issues. Once the team have identified sustainability themes such as climate change, resource constraints or an ageing population, they will then identify companies that play into these themes.
We like the fund as it has a well experienced management team with strong ESG integration into its investment process, including a negative screening to screen out the most controversial sectors. The managers invest in some of the most compelling themes with positive implications for the society and the environment. Finally, the managers’ flexibility to allocate between equity and fixed income securities have helped to mitigate risk.