As at: 31/12/24

Overview

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Policy

Objectives and investment policy

To provide capital growth by investing in companies which show a commitment to the protection and preservation of the natural environment. The Fund is actively managed by the Fund Manager who chooses investments with the aim of outperforming the FTSE All-Share Index (the “Index”) by 3% per annum on a rolling 3 year basis before deduction of fees. At least 80% of the Fund will invest in shares of UK companies, with up to 20% in international companies. Scottish Widows Unit Trust Managers defines screens for UK and International equity markets to prevent investment in specific companies or industry sectors* that are harmful to the environment. The Fund Manager, in selecting investments it believes provide attractive capital growth, will seek a mix of investment in companies whose specific products and services directly support or provide positive environmental outcomes or benefits, together with companies from any industry sector which, in the Fund Manager’s opinion, demonstrate high standards regarding sustainable environmental practice.

In seeking companies whose products and services support positive environmental outcomes the Fund Manager will look to invest in:

• Energy Transition: Companies whose technologies contribute to or assist the transition to Low Carbon energy;
• Environmental Infrastructure: Companies that finance, build or operate energy infrastructure such as wind or solar farms; 
• Environmental Industry: Companies whose products or services reduce the environmental impact of industrial activity;
• Low Carbon Consumer: Companies that enable consumers to live more sustainably;
• Circular Economy: Companies involved in the use of, or investment in, recycling technologies and waste management.

Companies which demonstrate high standards regarding sustainable environmental practice may include those which:

• Have responsible sourcing of sustainable resources;
• Promote environmentally responsible behaviour such as recycling;
• Have net zero carbon commitments.

The Fund will not invest in companies which: own reserves in; extract; produce; supply; generate; or receive revenue from fossil fuels. This includes thermal coal, gas, oil and tar-sands. It will also not invest in companies which receive revenue from nuclear energy including nuclear uranium mining, and the production and use of controversial weapons.

The Fund retains a level of portfolio diversification and risk management by investing typically in 30 to 60 holdings across different sectors* of the Index and in different market sizes. As a result the Fund’s performance may differ substantially from the Index.

*A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectors depending on the company’s business.

The FTSE All-Share Index has been selected as an appropriate benchmark as it provides a representation of the returns of securities in the UK equity market. The Fund  manager selects shares that meet the Fund’s environmental criteria from a diverse range of UK shares including those outside of the FTSE All-Share Index. Derivatives and
stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

(Source: KIID, as at January 2024)

Process

Resources, Affiliations & Corporate Strategies

Literature

• Fund factsheet
• Fund overview & Literature
• ESG Metrics

Last amended: 08/01/24 08:23