Royal London Sustainable Leaders Trust Class C Acc
Rated Fund 2017-19. Looks for the best in the sustainable universe
Royal London has an impressive sustainable investment team led by Mike Fox, who has managed the 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 in the portfolio tend to be leaders in their fields, with good managements and strong business franchises. It is a best ideas fund, so it is relatively concentrated, with typically 40-50 holdings. The top 10 usually make up about 40% of the portfolio.
In pursuit of sustainable returns, the fund will avoid investing in certain companies. For example, it will not invest in any company that manufactures armaments or produces or sells torture equipment, manufactures tobacco products, generates nuclear power or has unacceptable corporate governance practices. The screening of securities is conducted by Royal London Asset Management’s responsible investment team.
As well as applying a negative screen, the fund uses a positive screen to assess whether a company, through its products and services, 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 a focus on long-term themes and trends such as infrastructure and changing demographics.
Fox emphasises that financial and ESG considerations are fully integrated throughout the investment process. His approach is valuation-driven. It aims to identify mispriced opportunities and hold them for three to five years.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|AstraZeneca PLC||4.89 %|
|Rentokil Initial PLC||4.79 %|
|Smith & Nephew PLC||4.65 %|
|Experian PLC||4.42 %|
|SSE PLC||4.29 %|
|Unilever PLC||4.03 %|
|RELX PLC||4.00 %|
|London Stock Exchange Group PLC||3.89 %|
|Sage Group (The) PLC||3.83 %|
|Microsoft Corp||3.28 %|
|United Kingdom||78.55 %|
|United States||17.41 %|
|Consumer Cyclical||14.00 %|
|Financial Services||12.71 %|
|Real Estate||8.79 %|
|Consumer Defensive||8.22 %|
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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