Sun Portfolio Fund Climate Assets B GBP Accumulation
New for 2020. Invests in five themes related to climate change
This fund is a worthy addition to our Rated Funds for 2020 on account of its stellar performance record and exposure to sustainable investment themes. It was a constituent of interactive investor’s inaugural ACE 30 line-up of rated ethical funds in 2019, as a choice for adventurous investors.
Claudia Quiroz, at Quilter Cheviot, developed the sustainable investment strategy and has run it since launch in 2010. Also named on the fund is Caroline Langley. The managers invest around the world with a focus on investment opportunities arising from the convergence of climate change, resource scarcity and population shifts.
This is a mixed-asset portfolio that invests in equities, bonds and alternative investments, but the thematic and specialist nature of the fund makes it better suited to this asset group. The fund’s five investment themes are resources, energy, health, water and food.
The managers’ approach involves top-down and bottom-up analysis, which they undertake using a mix of quantitative analysis, in-house fundamental research, brokers’ research notes and management meetings. Portfolio positioning has been heavily biased towards shares for a decade, as companies have made the most of globalisation opportunities supported by an extremely favourable monetary background.
While they still favour stocks over bonds, they are cautious on the sustainability of the market rally and have been reducing equity exposure towards a more neutral position. The fund’s allocation to cash, at 4%, is higher than average, while it also has 13% in alternatives, such as gold and renewables infrastructure.
Narrative and ratings content all as of January 2020.See all Money Observer rated funds
|Waste Management Inc||3.04 %|
|Union Pacific Corp||2.96 %|
|Thermo Fisher Scientific Inc||2.92 %|
|Xylem Inc||2.69 %|
|United Kingdom of Great Britain and Northern Ireland 1.5%||2.60 %|
|American Water Works Co Inc||2.45 %|
|Royal Philips NV||2.35 %|
|Schneider Electric SE||2.27 %|
|Kingspan Group PLC||2.23 %|
|Ferguson PLC||2.22 %|
|United States||36.79 %|
|United Kingdom||16.52 %|
|Europe - ex Euro||7.72 %|
|Basic materials||10.25 %|
|Consumer Cyclical||8.79 %|
William began his career in 2002 at Laing & Cruickshank Investment Management, which was acquired by UBS Wealth Management in 2004. He joined Cheviot Asset Management in 2006 where, in addition to managing private client, pension and charity portfolios, he is the co-manager of the CF Cheviot Balanced Fund and the Climate Assets Fund and sits on Cheviot’s external fund selection committee.
Quiroz joined Henderson in 2002 and previously was the team leader for the Pharmaceutical & Household and Personal Care sectors at a leading SRI research house. She also worked for Praxair and Bestfood in Argentina, where she implemented quality and environmental management systems and also worked in business and client development. She has 8 years of industry experience.
Data provided by Morningstar.
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