Cheviot Climate Assets
- The fund aims to provide an income to investors greater than 3% of the value of the fund. Thus it can be a useful fund to hold for those investors who need to receive income from their investments.
- The centralised asset allocation system and multiple asset approach provides an investor with a built in management of risk, which takes into account economic conditions.
- The fund manager is looking to the future and trying to invest to benefit from future changes in the climate, population growth and resource scarcity.
- The focus on income makes the fund manager invest in bigger companies, compared to some other investment funds in this sector, with more diverse business operations and thus in theory in companies whose profits and thus valuations should be more steady over time and easier to buy and sell.
Fund summaryAn innovative, global multi-asset fund investing in established leaders and emerging winners that stand to benefit from the convergence of climate change, population growth and resource scarcity.
Supply of fossil fuels is depleting rapidly and it is set to be under pressure by 2030. In addition, many of the most extensive fossil fuel sources are located in countries of political instability adding security of supply to the problem of energy scarcity. Energy consumption is set to increase 50% by 2030, and many governments have already implemented legislation to reduce carbon emissions. In particularly, Europe is committed to reduce carbon emissions by 20% by 2020.
We will invest in companies providing solutions to the problems of using fossil fuels and energy scarcity & security, such as those involved in renewable energy generation, green transport, products & technologies for green building design & construction and energy efficiency.
Population is growing faster than ever before, with the majority of the growth coming from the developing world. To meet growing demand, food global supply is set to double by 2030. In addition, higher levels of prosperity will lead to changes on dietary choices and increased food consumption of protein rich products.
We will invest in companies providing solutions to the food supply/demand imbalance problem, such as those involved in grain production and harvesting, food testing, food processing measurement & control, and high-tech agriculture supplies.
Ageing, chronic and lifestyle diseases have put serious strain on the healthcare systems across the world. In addition climate change is increasingly responsible for the propagation of infectious diseases which are highly sensitive to changing temperatures and precipitation patterns, such as malaria.
We will invest in companies providing products and solutions to these problems, such as those involved in medical supply & devices, vaccines and products for infections diseases, minimal invasive surgery and medical analysis & testing.
Population growth and consumer consumption is driving materials usage and waste generation to grow to unsustainable limits. High income countries are generating 0.8 ton of waste per capita per yearcompared to 0.1 ton of waste per capita per year in the low income countries.
We will invest in companies providing solutions to the problems of resource scarcity, such as those involved in waste management, production and processing of environmentally friendly materials, waste-to-energy, coastal protection, productivity and efficiency gains and process control.
Water is becoming scarcer and more polluted from animal and human waste, industrial processes and the use of pesticides and other chemicals. Studies suggest that a 2°C rise in global temperatures could lead to a 20% reduction in water availability as well as crop yields and a more erratic water supply across many regions.
We will invest in companies providing solutions to the water scarcity problem, such as those involved in water supply and distribution, water analysis, monitoring and purification, water metering and efficient methods for crop irrigation.
Start Date for Fund Manager: March 2010
Claudia Quiroz - Fund Manager
Claudia has over 10 years' experience in Sustainable Responsible Investing and 5 years' experience in environmental engineering. She joined Cheviot in 2009 and has an MBA from the Cass Business School. She has been a Senior Analyst and Team Leader at Global CoreRatings, and worked at Henderson from 2002, where she was part of a team managing the Global Industries of the Future fund.
William Buckhurst - Fund Manager
William began his career in 2002 at Laing & Cruickshank Investment Management. He joined Cheviot in 2006 where, in addition to managing private client, pension and charity portfolios, he sits on Cheviot's external fund selection committee. He also has responsibility for the firm’s ethically screened portfolios.
Cheviot have an Investment Committee who meet quarterly to discuss the regional allocation and the split of asset classes given the economic conditions. This brings in the expertise of a much wider team than just the fund managers. The fund managers must work within these constraints in making their stock selections.
Ethical screens and 'informal screens'This fund has 12 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.The Fund Manager chooses to avoid areas where scientific research is not clear or robust enough to either clearly support or avoid a particular industrial area. As such the fund manager currently avoids investments in nuclear energy power generation and genetic modification. Given the nature of the companies in the investable universe, this fund does not have direct exposure to Armaments, Tobacco, Alcohol, Pornography or Gambling.
Top Ten holdings
- Treasury 1.875% idx lkd gilt 22/11/3.90%
- Severn trent plc3.10%
- Praxair inc2.90%
- Sonoco products co2.90%
- Emerson electric co2.80%
- Fresenius se & co kgaa2.60%
- Novo-nordisk as2.50%
- Co-operative bank 5.125% snr nts 20/2.50%
- Veolia environnement2.50%
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: Multi Asset
Launch date: 1 February 2010
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.