ESG Fund Factsheet

For adviser use only

CT Responsible UK Income

Classification: Sustainable
Management style: Active

Introduction

The Fund aims to provide income and long-term capital growth. The Fund is actively managed. It is not constrained by its comparator benchmark, the FTSE All-Share TR Index, and has significant freedom to invest in a portfolio that is different to the benchmark’s composition. The Fund seeks to achieve its objective by investing mainly in UK equities and some corporate bonds, which meet the Fund’s responsible screening criteria. Investment is concentrated in companies considered to be making a positive contribution to society and seeks to avoid companies which, on balance, do particular harm, including the sale of armaments or operating irresponsibly regarding the environment or human rights. The screening means some of the UK’s largest FTSE 100 companies are screened out on responsible grounds, the Fund therefore has significant exposure to medium and smaller companies.

Name Launch Date IA Sector Portfolio OCF* Fund Size (m)
CT Global Responsible Equity 15/08/2003 Global 0.79% £1,482.1*

About Columbia Threadneedle

Columbia Threadneedle’s reach is expansive, with 2,500 people — including more than 650 investment specialists — spanning the world. For them, global perspective is about more than numbers; it is about the smarter advantage they create when bringing their teams’ insights together. They’ve built diverse expertise and on-the-ground knowledge into their investment processes and solutions, covering almost every asset class and market.

They think their Responsible Investment (RI) capabilities can help you contribute through your investments to shaping the future world you seek. This continually pushes them forward in how they seek to operate as a business in developing their in-depth RI research capability as support for portfolio construction.  As a responsible investor, partner, and citizen they’re building their RI capabilities needed to help you, their clients, achieve your financial goals while seeking to shape the world you want to live in.

ESG Process

The overarching sustainability philosophy of the Fund is to:

  • Avoid – have a set of exclusion criteria setting threshold standards to avoid investment in companies with socially or environmentally damaging products or unsustainable business or governance practices.
  • Invest – invest in companies providing sustainability solutions and/or companies making a positive contribution to society and/or the environment.
  • Improve – engage with the companies that we invest in on significant environmental, social and governance (ESG) issues with most relevance to their business, to reduce risk, improve performance, encourage best practice and underpin long-term investor value.

The strategy is binding on the Investment Manager and all assets in which the Fund invests are subject to the sustainability criteria set out in the investment policy of the Fund. This may include assets where the Investment Manager believes it can make a difference through a positive contribution to the environment and society.

The fund looks to align with the UN Sustainable Development Goals, and has an 89% positive alignment with the goals (Fund ESG Profile and Impact Report 2022).

Exclusion Policies

The fund has exclusions on tobacco, alcohol, weapons, gambling, nuclear and pornography.

Engagement

As part of active ownership, the fund has responsibility to take key ESG issues into account before, during and after investment decisions. The global engagement programme is further structured around the following core themes:

Environmental Stewardship Climate Change
Human Rights Labour Standards
Public Health Business Ethics

Investment Performance

The funds benchmark is the FTSE All-Share index. It has underperformed the index over 1, 3 and 5 years.

Source fund factsheet, 31st October 2022

Past performance is not a guide to future performance.

Platform availability

The fund is available on the following platforms:

Abrdn Wrap M&G Wealth
Abrdn Elevate Fidelity
Advance by Embark Aegon
Aviva Interactive Investor
James Hay Novia
Nucleus Quilter
Transact

Supporting documents

Tenet Opinion

The fund has, as is common with sustainable funds, a strong alignment with the UN Sustainable Development goals. This covers a range of themes that should meet the aims and ethical views of a variety of clients. The fund also provides a good range of statistics and evidence for how the holdings match different themes within it’s literature which would be useful to aid client discussions and evidence the suitability of the fund.

The details around how the exclusions are applied is limited and therefore caution should be used when employing this fund for a client who would like to strictly omit certain areas from their portfolio.

Although the fund has underperformed it’s benchmark, the benchmark used does not have any sustainable investment restrictions applied whereas the fund does. This will mean the funds performance is affected by investment biases that don’t apply to the benchmark.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).