“By polluting the oceans, not mitigating CO2 emissions and destroying our biodiversity, we are killing our planet. Let us face it, there is no planet B.”

Emmanuel Macron, President of France

The history

We launched our Ethical Portfolio in 2014; we renamed it the Balanced Positive Impact Portfolio in 2020. In 2020 we added our Cautious and Adventurous Positive Impact Portfolios.

At the heart of the portfolios are the desire to find investments that protect the world’s resources for future generations and support a sustainable economy.

If investors can use their money for good, without compromising their goals and returns we believe this is a compelling story.

Why Positive Impact

There are many different names for investing to better both society and the environment.

We believe that to create a positive impact is responsible investing. This considers ESG factors supported by stewardship activities such as voting and engaging. We feel that good active fund managers are those that take their stewardship activities seriously and actively engage with companies to make change happen.

We selected the name positive impact for our range of portfolios because we believe the name reflects the positive nature of what we are aiming to achieve. Not only do we encompass the different approaches to investing but we also believe we can achieve this without sacrificing returns.

To achieve this, the portfolios look to Ethical, Impact, ESG (Environmental, Social and Corporate Governance) and Sustainable investments. This includes investment trusts as well as funds.

Ethical tends to be negative screening i.e. you can’t invest in certain things, whereas sustainable is positive. Within sustainable, ESG and Impact assets some managers will include investments which are transitioning from old world models to new.

The portfolios will behave differently from the others due to the mix of holdings which includes renewable energy, social housing etc, which don’t tend to respond in the same way as equity markets.

What is ESG

ESG covers three main areas:

Environmental – climate change, resource depletion, waste pollution and deforestation

Social – human rights, modern slavery, child labour, working conditions, employee relations

Governance – bribery and corruption, executive pay, board diversity and structure, political lobbying and donations, tax strategy

Carbon Footprint

Using data from yourSRI.com and MSCI, we look to demonstrate how the portfolios stand against the MSCI ACWI Low Carbon Leaders, MSCI Carbon Target and MSCI ACWI Index.

Portfolio Score

Using data from yourSRI.com we check the portfolios are compliant with the ten principles of the UN Global Compact.

This means operating in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption. More details can be found clicking here

We provide details of the ESG Rating Distribution and overall rating.

Where do we invest?

There are some great stories within the portfolios, including:

Civitas Social Housing, which is the first real estate investment trust dedicated to investing into social housing and healthcare facilities.

The Renewables Infrastructure Trust invests in energy sources (wind, solar) that contribute towards a zero-carbon world.

Impax Environmental Markets, which invests in companies which have at least 50% of underlying revenue generated by sales of environmental products or services in energy efficiency, renewable energy, waste and sustainable food and agriculture markets.

The portfolios may also bonds, including the Rathbone Ethical Bond Fund. Some examples of its holdings include Chelmer Housing Partnership, Charities Aid Foundation, Places for People and Dolphin for Living. Even in a world of squeezing incomes this fund is generating a yield of 3.5% p.a.

The portfolios also invest across Europe, UK, US, Emerging Markets and Asia as we seek fund managers who actively engage globally with companies to make positive change.

Click here for a short summary of each of the holdings under the Positive Impact Portfolio Range.

What is the benchmark

We use the Royal London UK FTSE4Good Tracker Trust. The FTSE4Good Index is a series of ethical investment stock market indices launched in 2001 by the FTSE Group. The index excludes companies due to their involvement in tobacco production, nuclear weapons, conventional weapon systems, or coal power industry and rates companies for inclusion based environmental sustainability, relationships with stakeholders, attitudes to human rights, supply chain labour standards and the countering of bribery. This is an evolving area and we believe this to be the closest match.

Blogs

We will add our most recent blogs below.

DateName
28 February 2020Positive Impact Investments
28 February 2020Building a more sustainable society
11 March 202150 Shades of Green

Fund Manager Meetings (2021)

DateFund ManagerFund Name
February 2021Benji Dawes and Jon HudsonPremier Miton Ethical Fund
February 2021Tom Crockford and Mohsin AhmadRegnan Global Equity Impact Solutions Fund
February 2021Sarah Norris and Iain HewittASI Europe ex UK Ethical Fund
February 2021Craig Bonthron, Neil Goddin, Jonathan Parsons and Ryan SmithArtemis Positive Future Fund
February 2021Amit Mehta and John CitronJPM Emerging Markets Sustainable Equity Fund