The fund aims to provide a combination of capital growth and income to deliver a return that is higher than that of the global stockmarket over any five-year period.
Investment policy and strategy
Core investment: At least 80% of the fund is invested in the shares of companies across any sector and of any size that are domiciled in any country, including emerging markets*. The fund usually holds shares in fewer than 40 companies. Companies that are assessed to be in breach of the United Nations Global Compact principles on human rights, labour, environment and anti-corruption are excluded from the investment universe. Industries such as tobacco and controversial weapons are also excluded.
Other investment: The fund also holds cash or assets that can be turned quickly into cash.
* Emerging market countries are defined as those included within the MSCI Emerging Markets Index and/or those included in the World Bank’s definition of developing economies, as updated from time to time.
Strategy in brief: The investment manager invests in the shares of companies with sustainable business models, where short-term issues have created attractive buying opportunities. The investment manager believes that this approach offers a powerful combination of the long-term, compounding growth that quality businesses can deliver, along with the potential boost to a company’s share price when a short-term issue has been resolved. Sustainability considerations are fully integrated into the investment process.
Performance comparator: The fund is actively managed. The MSCI World Index is a point of reference against which the performance of the fund may be measured.
Risks associated with the fund
The value of investments and the income from them will rise and fall. This will cause the fund price, as well as any income paid by the fund, to fall as well as rise. There is no guarantee the fund will achieve its objective, and you may not get back the amount you originally invested.
Changes in currency exchange rates will affect the value of your investment.
This fund holds a relatively small number of investments and, as a result, may experience larger price rises and falls than a fund which holds a larger number of investments.
The fund will invest in emerging markets which are generally smaller, more sensitive to economic and political factors, and where investments are less easily bought and sold. In exceptional circumstances, the fund may encounter difficulties when selling or collecting income from these investments, which could cause the fund to incur a loss. In extreme circumstances, it could lead to the temporary suspension of dealing in shares in the fund.
Where market conditions make it hard to sell the fund’s investments at a fair price to meet customers’ sale requests, we may temporarily suspend dealing in the fund’s shares.
Some transactions the fund makes, such as placing cash on deposit, require the use of other financial institutions (for example, banks). If one of these institutions defaults on their obligations or becomes insolvent, the fund may incur a loss.
The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.