Navigating the sprawling universe of sustainable funds is really difficult. Many investment vehicles boast about their ESG (environmental, social and governance) credentials, but hold a range of clean, less clean and openly dirty companies, depending on how their managers interpret the term. Frustrated investors on the hunt for genuine commitment and a good level of transparency will find that FP WHEB Sustainability (GB00B8HPRW47) is an excellent place to start.
- Transparent ESG strategy
- Holdings could outperform if rates fall
- Very active approach
- Decent level of diversification
- Sustainable focus could limit returns
- Tough environment for mid caps
FP WHEB Sustainability is an impact fund. In ESG land, this means it invests in companies that have a positive impact on social and environmental issues, and that the impact is measured and reported on. As the fund’s asset manager, a boutique house dedicated to investing for impact in listed equities puts it: “Much of the interest in ESG is primarily directed at meeting new compliance requirements or as an element in managing investment risk. In contrast, impact investing embodies an investment philosophy that gives positive impact equivalence to risk and return at the heart of the investment decision.”