IM WHEB Sustainability
- A global Multi-Thematic fund investing in 9 themes which provide solutions to sustainability challenges.
- The fund is managed by keeping regional allocations in line with the MSCI World Index, diversified across 70 or so stocks.
- Tim Dieppe, the Lead Fund Manager, moved from Henderson on 1st April 2012 where he managed the successful Henderson Industries of the Future fund, which outperformed the MSCI World Index in the 5 years prior to the 1st April 2012.
- The fund is managed predominantly from bottom up stock picking and is likely to have its heaviest weightings within the health, sustainable transport and energy efficiency themes.
- the fund managment team manage their 9 themes based on the 4 megatrends they see changing society which are - resource scarcity, the ageing of the west, rising living standards in emerging economies and the increased interconnectivity of the world.
Fund summaryThe IM WHEB Sustainability fund is WHEB's Flagship fund which:
- Provides access to a new generation of investment themes with powerful long-term growth characteristic
- Applies a disciplined and diversified multi-thematic approach;
- Follows a global strategy providing access to the best investment ideas;
- Applies an integrated approach combining environmental, social &governance issues into analysis; and
- Adopts a responsible approach to ownership, promoting best practice among portfolio holdings.
The pace and scale of change in the global economy today is creating profound challenges for businesses and societies around the world. This change in turn is driven by deep-rooted mega-trends involving escalating resource consumption and consequent scarcity, changing patterns of wealth, ever-greater connectivity and a growing, and ageing population.
This is no longer business as usual. Not for businesses, and still less for investors. The economic landscape is being fundamentally reshaped: creating real opportunity for companies providing solutions to these challenges, and real risks for those sectors that deplete human and natural capital.
Successful thematic investing is fundamentally about identifying investment themes in areas that will continue to enjoy above market growth over the long-term, selecting the best companies operating in these themes, and in buying and selling them at the right price.
Our analysis of mega-trends focuses above all on the social and environmental challenges that are playing an increasingly central role in the global economy. It is our conviction that these trends will persist for decades and in turn create real market opportunities for companies that provide solutions to mitigate or ease these challenges.
From these trends, we have selected nine highly diversified investment themes which we use to direct our attention to companies that provide solutions to the challenges posed by the mega-trends and therefore have the potential to significantly grow their earnings. Our nine themes include four social and five environmental themes.
Our objective is to construct a portfolio of global growth companies that enable, and benefit from, the transition to sustainability. We have identified four mega-trends that are exerting a powerful influence over the development of the global economy. These mega-trends are:
1. Resources scarcity
2. Ageing population
3. Rising population/rising living standards
We have also pinpointed nine specific investment themes which we expect to benefit from these underlying trends. It is from within these themes that we select companies for inclusion in the portfolio:
1. Environmental services
2. Cleaner energy
3. Resource efficiency
4. Water management
5. Sustainable Transport
8. Quality of life
The aim of the Fund is to achieve capital growth over the medium to longer term which exceeds the performance of the MSCI World Index of shares.
Management, Risk Control and Governance
George Latham (Managing Partner)
Responsible for the overall management of the WHEB Asset Management business. Previously head of the SRI Team at Henderson Global Investors. Fund manager for 15yrs with City wire ratings at Henderson and Threadneedle.
Clare Brook (Founding Partner)
21 year track record and one of the pioneers of sustainable investing. Twice built +£1bn SRI fund ranges at Henderson and Aviva where she was awarded ‘Leading European Fund Management firm for SRI’ in 2003, 2004, 2006 and 2007.
Geoff Hall (Chairman)
38 years’ experience of institutional fund management. Chief Investment Officer of Allianz UK (formerly Allianz Cornhill) from 1995 to 2011. Previously held supervisory and portfolio management roles at HSBC and British Rail Pension Board.
Tim Dieppe (Partner, Fund Manager)
Lead fund manager and responsible for the Industries of the Future fund at Henderson for 7 years. Named by Citywire as one of the top 100 fund managers in the UK for 2007. Over 19 years experience in fund management, holds UKSIP qualifications.
Seb Beloe (Partner, Head of Sustainability Research)
Leads on the analysis and identification of sustainability investment themes. Previously head of SRI Research at Henderson Global Investors. Has two degrees in environmental science and technology and is a Chartered Environmentalist.
Ted Franks (Partner, Associate Fund Manager)
Launched the Sustainability Fund at WHEB in 2009 and is Associate Fund Manager for the fund. Previously advised on renewable energy, water, waste & healthcare at Dresdner Kleinwort & KPMG, CFA Charterholder and a Chartered Accountant.
Hyewon Kong (Senior Analyst)
Was an Associate Fund Manager at Henderson Global Investors where she worked closely with Tim Dieppe managing the Industries of the Future fund. Worked as an SRI analyst at Henderson and Jupiter Asset Management.
Ty Lee (Senior Analyst)
Joined in March 2011 after completing MSc in Finance from London Business School. Previously worked as a senior associate at UOB Asia in Hong Kong, and at Morgan Stanley and Accenture.
Jade Summer (Investor Relations Manager)
Her role is to raise awareness and to provide a point of contact for existing and potential investors who require information on the fund. If you would like to arrange a conference call or a meeting with the investment team then please contact Jade (firstname.lastname@example.org).
Ethical screens and 'informal screens'This fund has 14 full or informal screens applied:
* These are 'informal screens'. This means that the Fund Manager is avoiding companies which engage in these activities, but that you are unlikely to find statements in the Fund Manager's literature which states as much. The activity in question is avoided either because this is an integral part of the investment process of the fund, or the Fund Manager has simply confirmed separately to Worldwise Investor that they will avoid companies involved in such activities.
To find out more about ethical screens, click here.
Whilst the IM WHEB Sustainability Fund does not have any explicit ethical screens, the investment philosophy of the fund is such that it actively selects companies that are providing sustainability solutions to invest in, and therefore we are highly unlikely to own companies with significant involvement in armaments, alcohol, tobacco, gambling, or pornography stocks.
In addition, the integration of sustainability and financial analysis means that ESG factors are closely considered in our investment process. In our view, high quality companies understand and address the growing importance of resource constraints in their business planning and operations. Furthermore, we believe that companies with a firm grasp of the importance of a wide-range of stakeholder views and perspectives are also better able to negotiate a rapidly changing economic landscape. Sustainability leaders will, in our view, also be market leaders and our analysis includes explicit consideration of the company’s governance and business ethics, the quality of its supply-chain (including social and environmental issues) as well as its management of risks related to its use of natural resources. This research forms a core part of our stock-level analysis.
Our integrated stock level analysis also helps us to protect the fund from companies that are poorly positioned to deliver market out-performance over the long-term. Our research considers the robustness of company risk management systems, governance processes, the extent of any involvement in controversial issues or activities and overall company alignment with sustainability issues and themes. Based on this analysis, we are able to form a view of a company’s suitability for the fund. If the company is, in our view, exposed to excessive reputational risk, or has significant activity in areas that are not consistent with the philosophy of the fund, then it is unlikely to be selected for investment. See how we vote at the AGMs of the companies that we invest in.
Top Ten holdings
- Stericycle inc1.80%
- Ecolab inc1.80%
- Fresenius se & co kgaa1.80%
- Shimano inc1.80%
- Acuity brands inc1.70%
- Pentair ltd1.70%
- Lkq corp1.70%
- Schneider electric1.70%
- Regal beloit corp1.70%
- Suez environnement co,1.70%
What are the risks?
Some of the information on this page and other related pages is provided to you for your information and is received from the Fund Management Company administering this fund. Worldwise Investor accepts no liability for the reliability or accuracy of the data provided by third parties. Read more about our data sources in our Terms & Conditions. Some performance differences between the fund and the benchmark may arise because the fund performance is calculated at a different valuation point from the benchmark.
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In the Press
Asset class: Equity
Launch date: 26 May 2009
The value of ethical and green investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks of investing. Our aim is to provide you with the best information we can to help you make decisions about ethical and green investments. It is not to advise you on the suitability of an investment to your personal circumstances. Nothing written on the site should be considered personal advice, nor do Holden & Partners accept liability for any inaccurate information on the site. If you are unsure about the suitability of an ethical and green investment please contact Holden & Partners or your financial adviser.