Investec Asset Management has launched the Investec UK Sustainable Equity Fund (OEIC) offering UK clients a diversified and differentiated investment strategy focusing on positive impact and engagement and aims to provide investors with long-term capital growth and income.
Seeking to provide investors with 3 per cent outperformance of the FTSE All Share index per annum (gross of fees) over a full market cycle, the fund, has been awarded the independent 4-star rating from 3D Investing, which verifies fund excellence.
Citywire AA rated portfolio manager Matt Evans will run the Investec UK Sustainable Equity Fund, with the support of Investec Asset Management’s established Quality investment process and ESG team. Evans will employ a rigorous and repeatable multi-faceted investment process in order to identify UK all-cap companies making a positive contribution to the future of society and the environment, whilst drawing upon his experience and previous track record of managing an award-winning ethical strategy.
David Aird, Managing Director, UK Client Group at Investec Asset Management, says: “Sustainable investment is increasingly top of mind for our clients, the asset management industry at large and broader society. This inaugural launch marks a significant milestone for Investec Asset Management’s ongoing journey and long-term commitment towards sustainable investing. Matt’s experience and investment excellence make him well placed to identify those companies with quality characteristics, which are truly making a positive impact, whilst drawing on the expertise of our dedicated ESG team. We believe market beating returns and making a positive contribution are not mutually exclusive and we are incredibly excited about the launch of the Investec UK Sustainable Equity Fund and what it seeks to offer to investors.”
The fund seeks an attractively valued portfolio of 40-60 quality businesses, each of which will undergo a meticulous research process driven by risk, reward and sustainability. This scrupulous assessment and continual monitoring will ensure a thorough understanding of each company’s internal, external and financial sustainability.
Internal and external sustainability of each company will be evaluated using Investec Asset Management’s proprietary framework of investible ‘Sustainable Themes’, mapped against the UN Sustainable Development Goals (SDGs), covering social and economic development issues including factors such as health, education, social justice, global warming and poverty.
Therese Niklasson (pictured), Global Head of ESG at Investec Asset Management, says: “The asset management industry has a unique and very real duty in its responsible allocation of clients’ capital to help protect tomorrow’s world. Investec Asset Management’s African heritage planted the seed at inception for its holistic and multi-dimensional approach to sustainable investing – a journey on which we are deeply embedded and immensely proud. This includes investing in African private markets for over a decade, rolling out deep integration and active ownership strategies and funding projects on the front line of conservation, all of which contribute to the massive challenge around sustainable development. Other examples include pioneering a dedicated African credit and debt capital markets strategy and managing the Emerging Africa Infrastructure Fund – encouraging growth and employment, and fuelling the long-term development of Africa’s capital markets. Sustainable investing is part of our investment DNA.”
Evans says: “Our rigorous and repeatable investment process enables us to construct a sustainable investment portfolio which is impactful both collectively and at the individual stock level. With a thorough understanding of the three pillars of sustainability – internal, external and financial – and an acknowledgement that it is not just the products and services a company delivers that have an impact but its own internal practices, we believe we can create a portfolio that will deliver sustainable investment returns and positively contribute to a better future.”