Global Environment Fund

Seeking to capture the structural decarbonisation growth story – investing in companies that are driving the transition to a low carbon world.
Seeking to capture the structural decarbonisation growth story – investing in companies that are driving the transition to a low carbon world.

Capturing the decarbonisation growth opportunity

To combat climate change and reduce carbon emissions, the world needs to transform. We invest in companies leading that transformation.

“The challenges currently posed by climate change pale in significance compared with what might come... The more we invest with foresight; the less we will regret in hindsight.”

Mark Carney, Former Governor of the Bank of England

 

 

Why choose this Fund

01

Access an area of structural growth:
Companies enabling decarbonisation should enjoy a multi-year tailwind from global efforts to reduce emissions

02

Rebalance climate risk within other parts of your portfolio

03

Make an impact:
Invest in businesses that are helping to solve one of the biggest challenges facing the planet

Key features

  • A high conviction, concentrated portfolio with high active share1
  • A unique investment approach focused on the renewable energy, electrification and resource efficiency sectors
  • A proprietary screen generates a universe of c.700 companies, only 7% of which overlap with MSCI All Country World Index
  • Includes proprietary measurement of indirect Scope 3 carbon emissions, allowing us to identify businesses' full carbon footprint
  • Regular engagement with companies and Annual Impact Reporting

 

The opportunity

The world needs to invest US$2.4 trillion p.a.2 to move to a low carbon economy
  1. Renewable Energy
    To limit global temperature rises to safe levels, a shift to renewable energy is essential.
  2. Electrification
    Electrification of transportation, heating and industrial processes is vital to controlling emissions.
  3. Resource efficiency
    Less discussed than the other themes, resource efficiency is a crucial aspect of decarbonisation.

A team committed to environmental change

The Global Environment team has the specialist skill sets needed to invest in decarbonisation, specifically: direct experience of managing decarbonisation-focused strategies; and deep knowledge of the economic and investment implications of the energy transition.

 

The team draws on the expertise of the wider Thematic Equity team within Multi-Asset at Ninety One, who have a specialist knowledge of the supply/demand dynamics of metals and mining — including many of the key elements that go into renewable technologies. ESG factors are fully integrated into their investment process.

Deirdre Cooper
Portfolio Manager
Deirdre is Co-Head of Thematic Equity within the Multi-Asset team at Ninety One. She is co-portfolio...
Graeme Baker
Portfolio Manager
Graeme is a portfolio manager in the Thematic Equity team within the Multi-Asset team at Ninety...
*UN IPCC estimates, 2016 –2035, https://www.climate-kic.org/news/no-more-excuses-financing-1-5c. 1Versus MSCI ACWI Index. The portfolio may change significantly over a short period of time.2These internal parameters are subject to change not necessarily with prior notification.

General risks

The value of investments, and any income generated from them, can fall as well as rise. Where charges are taken from capital, this may constrain future growth. Past performance is not a reliable indicator of future results. If any currency differs from the investor's home currency, returns may increase or decrease as a result of currency fluctuations. Investment objectives and performance targets are subject to change and may not necessarily be achieved, losses may be made.

Specific Risks
Geographic/sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that the resulting value may decrease whilst portfolios more broadly invested might grow. Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company. Concentrated portfolio: The portfolio invests in a relatively small number of individual holdings. This may mean wider fluctuations in value than more broadly invested portfolios. Commodity-related investment: Commodity prices can be extremely volatile and significant losses may be made. Emerging market (inc. China): These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems

Important information
All information is as at 31.12.19 unless otherwise stated.

Figure 2: Figures calculated based on percentage ownership of security within the Global Environment Strategy if US$1 million invested as at 31 December 2018. This is the latest available company data as at 2018.