Royal London Sustainable Leaders Trust Class C Acc

UK Growth

Rated Fund 2017-20. Looks for the best in the sustainable universe          

Royal London has an impressive sustainable investment team led by Mike Fox, who has managed this fund since 2003. After companies have been screened for environmental, social and governance (ESG) factors, he looks primarily for those he believes display better long-term prospects for growth than the broader stockmarket. Companies within the portfolio tend to be leaders in their field, with good managements and strong business franchises.

It is a "best ideas" fund, so is relatively concentrated with typically 40 to 50 holdings. The top 10 usually make up about 40% of the portfolio. In pursuit of sustainable returns, Fox avoids investing in certain companies. For example, he does not invest in any company that manufactures armaments or produces or sells torture equipment, manufactures tobacco, generates nuclear power or has unacceptable corporate governance. The screening of securities is conducted by Royal London Asset Management's responsible investment team. In addition to the negative screening criteria, it also applies a positive screen. This assesses whether a company provides a net benefit to society and/or whether it is a sector leader in terms of its ESG management. Sectors considered more favourably include healthcare and technology, whereas areas such as commodities are generally avoided. There is also a focus on long-term themes and trends such as infrastructure and changing demographics.

Fox emphasises that there is full integration of financial as well as ESG considerations throughout the investment process. His approach is valuation-driven, aimed at identifying mispriced opportunities and holding them for three to five years. "This is a suitable core UK ethical fund for investors wanting to improve their portfolio's ESG profile," says Adrian Lowcock, head of personal investing at Willis Owen.

Narrative and ratings content all as of January 2020.  

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Name
Royal London Sustainable Leaders Trust Class C Acc
Manager
RLUM Limited
Type
Unit Trust
ISIN
GB00B7V23Z99
Sector
UK All Companies
Launched
26/11/2012
OCF
0.76 %
Risk Rating
1
3 Year Sharpe
0.96
3 Year Alpha
8.37
Yield
1.8 %
Benchmark
FTSE AllSh TR GBP
The trust aims to achieve capital growth from a diverse portfolio of equities, mainly in the United Kingdom and in any economic sector. Investment is limited to companies that are likely to benefit from measures to improve the environment, human health, safety and the quality of life.
Holding %
AstraZeneca PLC 4.95 %
SSE PLC 4.80 %
Rentokil Initial PLC 4.28 %
RELX PLC 4.14 %
London Stock Exchange Group PLC 4.10 %
Sage Group (The) PLC 4.09 %
Experian PLC 4.07 %
GlaxoSmithKline PLC 4.05 %
Smith & Nephew PLC 3.87 %
Microsoft Corp 3.22 %
Region %
United Kingdom 76.04 %
United States 17.78 %
Sector %
Healthcare 21.25 %
Industrials 14.93 %
Financial Services 14.61 %
Technology 9.60 %
Communication Services 9.31 %
Real Estate 8.47 %
Utilities 8.21 %
Consumer Cyclical 5.51 %
Name
RLUM Limited
Address
United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

Mike Fox
Joined 11/03/2003

Mike is investment manager of the CIS Sustainable Leaders Trust and has been doing this job since November 2003. Mike selects, from the list of companies meeting the criteria of the Trust, the companies most likely to provide strong investment performance.

Data provided by Morningstar.

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