Fund picks to ‘restore our earth’

Portfolios that support this year's Earth Day theme

This year’s Earth Day has the theme of ‘restore our earth’ asking supporters to focus on natural processes, emerging green technologies, and innovative thinking that can restore the world’s ecosystems.

Organisers said the theme rejects the notion that mitigation or adaptation are the only ways to address climate change.

On that note, fund selectors have below highlighted funds that support this year’s Earth Day theme as well as being candidates for long-term core components of portfolios.

Dzmitry Lipski, head of funds research, interactive investor

Impax Environmental Markets Trust

“This invests predominantly in quoted companies that provide, use, implement or advise upon technology-based systems, products or services in environmental markets. There is a particular focus on alternative energy and energy efficiency, water treatment and pollution control, and waste technology and resource management (which includes sustainable food, agriculture and forestry).”

“The investment trust is listed on our ACE 40 as an adventurous option due to the specialist nature of the strategy.

“The trust’s holdings are predominantly listed in US and Europe and cover a range of sectors in which the trust’s objectives are directly relevant. The trust has an 18-year track record but has seen its performance go from strength to strength since 2016, when investors began to take a closer interest in ESG factors.

Jupiter Ecology Fund

Launched in 1988, the fund is one of the longest-running, environmentally-focused funds in the UK. It invests across environmental themes that include renewable energy, pollution reduction, resource efficiency, water treatment and infrastructure, and waste recycling.

“At least 70% of the fund is invested in shares of companies based anywhere in the world whose core products and services address global sustainability challenges, and up to 30% can be invested in other assets, including shares of other companies, open-ended funds and cash.

“Companies must meet both a comprehensive financial assessment and environmental and social criteria including looking at a full range of ethical exclusions.

RobecoSAM Sustainable Water Equities Fund

“This portfolio invests in companies offering technologies and infrastructure that enable efficient management and treatment of water supplies – from irrigation systems and pipeline networks that efficiently distribute water to waste treatment plants testing analytics that guarantee its quality.”

Most bought ethical funds on the ii ethical long list since Earth Day 2020 to 15 April 2021

PositionInvestmentACE’ category
1The Renewables Infrastructure GroupEmbraces
2Greencoat UK WindEmbraces
3Gore Street EnergyEmbraces
4Stewart Investors Asia Pacific Leaders Sustainability FundConsiders
5Liontrust Sustainable Future Global GrowthConsiders
6NextEnergy Solar FundEmbraces
7JLEN Environmental Assets GroupEmbraces
8Bluefield Solar Income FundEmbraces
9BGF Sustainable Energy FundEmbraces
10Janus Henderson Global Sustainable Equity Considers

Adrian Lowcock, head of personal investing, Willis Owen

ASI UK Ethical Equity

“Manager Lesley Duncan, follows a strict ethical approach screening companies on both positive and negative criteria. The process means some sectors such as tobacco, weapons and pharmaceutical (animal testing) are excluded in favour of companies that promote equal opportunities, strong ethical governance and support the local community.”

Royal London Sustainable Leaders

“Mike Fox is a veteran of sustainable investing and focuses on companies which have a positive effect on the environment, human welfare and quality of life. He also invests in companies where the management are making above-average efforts in corporate responsibility.”

Stewart Investors Worldwide Sustainable

“Nick Edgerton and David Gait carry out fundamental analysis with a particular focus on sustainability of company earnings and business models. The portfolio tends to have a bias to defensive growth companies due to the focus on high-calibre management and healthy balance sheets.”

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Natalie Kenway

Natalie is global head of ESG insight for ESG Clarity and has been an investment journalist for 16 years. She won Editor of the Year at the Aviva Investors Sustainability Media Awards 2021, and was Winner...