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June 4, 2021

Under the bonnet of ESG investing

As you’ll already be aware, we’ve committed to the introduction of environmental, social and governance (ESG) investing into our investment range.  This follows on from our client survey last year which confirmed a strong preference for our invested funds to promote positive outcomes where possible, without sacrificing opportunity for growth or increasing underlying risk.

Within the next couple of months Square Mile’s active portfolios will include between 15-20% in sustainably rated funds.

This of course is an incremental process, with only those funds meeting Square Mile’s investment criteria in the first instance, being considered for inclusion. Performance and investment control within each portfolio, remain the over-riding priorities – but sustainability is an important consideration.

To give you an ‘under the bonnet’ look at what types of companies are being invested in with the introduction of these sustainable funds, let’s look at Stewart Investors Worldwide Sustainability fund – this currently holds shares in a US company called Illumina. Illumina’s technology played a major part in developing the vaccines we now have to combat Covid-19.

The same Stewarts Investors fund also has holdings in a Dutch company called Alfen, which makes chargers and storage/batteries for electric vehicles.  Electric cars are becoming noticeably more popular these days, particularly as continued innovation is steadily increasing the battery mileage range.

Another notable fund, the BNY Mellon Sustainable Global Dynamic Bond fund invests in German company,  SYNLAB, whose technology enables vastly improved turnaround times for hospital testing, thus saving lives every day around the world – including Guy’s and King’s College hospitals in the UK.

The global economy is evolving, and with it are sustainable investment opportunities. We’re pleased to be able to offer these to you.

Get in touch if you’d like to know more.

June 4, 2021