ESG Fund Factsheet

For adviser use only

FP WHEB Sustainability

Classification: Impact
Management style: Active

Introduction

The Fund focuses on the opportunities created by the transition to healthy, low carbon and sustainable economies. The investment team selects high-quality companies from nine broad themes with strong growth characteristics to create a globally diversified portfolio. The fund develops long-term relationships with company managements to promote the best environmental, social and economic outcomes.

*As at 31/10/2022

Name Launch Date IA Sector Portfolio OCF Fund Size (m)
FP WHEB Sustainability 03/09/2012 Global 1.03% £849.4*

About WHEB

Developed by pioneers in this community, WHEB’s strategy was originally launched in 2005. With a track record of more than fifteen years, it is one of the longest established sustainability investment strategies on the market.

WHEB Group was originally founded in the late 1990s. Their focus on sustainable and impact investing remains unchanged since then. WHEB Asset Management was founded in 2009 and took over the management of the current investment strategy in 2012.

Since then, the business has grown substantially and is recognised as one of the leading impact investors in listed equities in Europe. Their ambition is to remain at the forefront of the rapidly evolving impact investing market.

Investment Philosophy

FP WHEB’s team of sustainability experts have developed bespoke tools that are used to analyse companies as part of their investment process.

  • The Impact Engineis an analytical tool that helps them evaluate the ‘intensity’ of the positive impact from products and services offered by companies. This tool captures the different dimensions of positive impact that are created by products and services to provide an overall intensity rating for the company.
  • The Fundamental Quality analysisis the second step in their process.  This framework is used to assess the overall quality of the business, including how it manages critical Environmental, Social and Governance (ESG) issues alongside the quality of the company’s business model and financial management.

WHEB’s investment strategy covers five environmental and four social themes, which directly support seven of the UN’s Sustainable Development Goals.

These Themes are;

  • Safety
  • Environmental Services
  • Sustainable Transport
  •  Health
  • Cleaner Energy
  • Education
  • Well-Being
  • Resource Efficiency
  • Water Management

Negative Impact Considerations

When the fund analyses companies, they think carefully about any potential negative impacts associated with their products and services as well as their operations. This means they we only invest in companies where they are clear on the overall positive impact of the business.

As a result, they have never invested in any company with activities significantly (>5% of revenues) involved in the production of alcoholic beverages, cosmetics where animal testing has been involved, gambling products or services, fossil-fuel exploration or production, intensive farming practices, nuclear power generation, pornographic materials, tobacco products, unsustainable timber products or weapons.

They consider these products to have a significant negative impact. Companies that have significant activities in these areas would not be considered to have an overall positive impact and would therefore be ineligible for investment. Only 15% of listed companies reach the positive impact threshold criteria to be included in WHEB’s universe as potential candidates for investment.

Investment Performance

The funds benchmark is the MSCI World Total Return. Over 1, 3 and 5 years the fund has underperformed the index.

Performance as at 30th September 2022, source fund factsheet.

Past performance is not a reliable indicator of 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

WHEB has an organisational focus on sustainable investing, rather than this simply being a fund range that focuses on these issues. This means that they have a significant level of data and information on the fund, it’s holdings and goals available. This is very useful for client conversations and ensuring that the fund matches goals and objectives.

The fund focuses on companies within  the identified themes in a way that generates a positive impact. As such this fund may be more appropriate for clients where their non-financial goals are as if not more important than

The fund is high conviction, normally holding between 40 and 60 companies, meaning that it may not generally be suitable as a core holding for a 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).