Royal London Sustainable Leaders Trust Class C Acc

UK Growth

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.

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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
3
3 Year Sharpe
1.18
3 Year Alpha
6.52
Yield
1.9 %
Benchmark
FTSE AllSh TR GBP
The fund seeks to provide above-average capital growth through investment in companies that have a positive effect on the environment, human welfare and quality of life. The Trust invests predominantly in the UK but with some exposure to the US and Europe. The core of the investment portfolio consists of shares in companies involved wholly or in part in the manufacture of products, industrial processes or the provision of services associated with improving the environment and the enhancement of human health and safety. The fund manager also invests in companies whose management are making above-average efforts in corporate responsibility. The fund is screened in accordance with The Co-operative Investments ethical investment policy, a copy of which is available on request.
Holding %
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 %
Region %
United Kingdom 78.55 %
United States 17.41 %
Sector %
Healthcare 18.87 %
Industrials 16.16 %
Consumer Cyclical 14.00 %
Financial Services 12.71 %
Technology 11.10 %
Real Estate 8.79 %
Consumer Defensive 8.22 %
Utilities 6.42 %
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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