Sustainable investing is a modern and inclusive method of embedding values in investing. The difference to ethical investing is that the screening is mainly positive – rather than ‘screening out’, we ‘screen in’. It is about doing good, rather than avoiding bad.
But while we look to find companies that have a positive impact on society and have strong environmental, social and governance (ESG) credentials, we never lose sight of the fact that our aim as investors must always be to choose the investments that have the potential to outperform and make strong returns over the long term.
In our view, markets often undervalue companies that can have a positive influence on society and the environment. Our Sustainable funds aim to exploit this inefficiency. In the years since these funds were launched, we believe that we have shown that what is positive for the environment and society is also better for long-term investing returns.
We look for companies that are innovative and responsible, that have a strong, long-term potential for growth, and aim to positively benefit society. This means companies involved in fields such as healthcare, cloud computing, artificial intelligence and urban regeneration. Companies that are leading the transition to a low-carbon economy, or driving social and economic development in emerging markets also form part of our holdings. We are constantly on the search for the leaders in their fields, with excellent management teams and strong franchises.
At the same time, we won't invest in companies involved with activities such as tobacco, nuclear power generation, animal fur and arms.
Our team is an experienced one with a long-term track record. We’ve been managing the sustainable funds since 2003, through varied market, economic and social cycles. The team is supported by RLAM’s Equity and Fixed Income teams, and works closely with our Responsible Investment team.
A diverse fund range
We manage over £12 billion of assets (source RLAM, as at 31 March 2022) in our award-winning Sustainable funds, with these available in a range of options that will suit a number of different risk profiles. We manage eight pooled funds, ranging from 100% fixed income to 100% equities, and a number that invest in both.