Over the summer, we’ve seen the beginnings of an ‘ESG backlash’. Former BlackRock Sustainable Investing CIO, Tariq Fancy, published an essay calling ESG a ‘dangerous distraction’ from reality, and the SEC are investigating DWS’s sustainability claims after greenwashing concerns. WHEB will publish a white paper on impact investing in listed equities detailing our approach later in the year, but in the meantime, Head of Research, Seb Beloe, considers ‘Is ESG investing a waste of time?’ in this month’s commentary.
The IPCC’s ‘Code Red’ report published last month is sobering reading. The main takeaway is the now-irrefutable link between human activity, global warming and extreme climate events. We all have a role in solving the problem, and that includes investors. Associate Fund Manager, Victoria MacLean, explores what WHEB is doing to engage with portfolio companies over net zero targets and accountability, assesses carbon prices and explains why efficiency is still important.
WHEB has appointed a new member of our independent Investment Advisory Committee. We are delighted to announce that Alice Chapple, Director of Impact Value and authority on sustainable investment, has joined the committee.
Ty Lee, Associate Fund Manager, spoke to The Big Exchange about WHEB’s approach to impact investing and highlights stock examples which are enabling a sustainable recovery from the pandemic.
In case you missed it, here are the video highlights of Ted Franks’ interview with ESG Clarity magazine in their impact edition.
||Agilent Technologies||United States||Health Care|
||Danaher||United States||Health Care|
||Icon||United States||Health Care|
||MSA Safety||United States||Industrials|
||TE Connectivity||United States||Information Technology|
||Thermo Fisher Scientific||United States||Health Care|
|1 MTH||1 YEAR||3 YEARS P.A.||5 YEARS P.A.||SINCE INCEPTION P.A.|
|WHEB Sustainable Impact Fund||3.8%||33.5%||13.8%|
|Strategy (partial simulation – see below)||14.7%||7.6%|
|MSCI World Total Return Index (net, AUD unhedged)||3.1%||31.3%||14.6%||15.5%||7.6%|
Swipe horizontally to see all columns
|VOLATILITY3||13.1%||NUMBER OF STOCKS||45|
Partner, Fund Manager
Partner, Head of Research
The Pengana WHEB Sustainable Impact Fund invests in companies with activities providing solutions to sustainability challenges. WHEB have identified critical environmental and social challenges facing the global population over coming decades including a growing and ageing population, increasing resource scarcity, urbanisation and globalisation. The Fund invests in companies providing solutions to these sustainability challenges via nine sustainable investment themes – five of these are environmental (cleaner energy, environmental services, resource efficiency, sustainable transport and water management) and four are social (education, health, safety and well-being). WHEB’s mission is ‘to advance sustainability and create prosperity through positive impact investments.’
|Harding Loevner International Fund||Axiom International Ethical Fund||Axiom International Ethical Fund (Hedged)||Australian Equities Fund|
|High Conviction Property Securities Fund||Global Small Companies Fund||WHEB Sustainable Impact Fund||Emerging Companies Fund|
|High Conviction Equities Fund||Pengana International Equities Limited (ASX: PIA)||Private Equity Trust (ASX: PE1)||Alpha Israel Fund|
1. From August 2017, performance figures are those of the Pengana WHEB Sustainable Impact Fund’s class A units (net of fees and including reinvestment of distributions). The strategy’s AUD performance between January 2006 and July 2017 has been simulated by Pengana from the monthly net GBP returns of the Henderson Industries of the Future Fund (from 1 January 2006 to 31 December 2011) and the FP WHEB Sustainability Fund (from 30 April 2012 to 31 July 2017). This was done by: 1) converting the GBP denominated net returns to AUD using FactSet’s month-end FX rates (London 4PM); 2) adding back the relevant fund’s monthly ongoing charge figure; then 3) deducting the Pengana WHEB Sustainable Impact Fund’s management fee of 1.35% p.a. The WHEB Listed Equity strategy did not operate between 1 January 2012 and 29 April 2012 – during this period returns are zeroed. The Henderson Industries of the Future Fund’s and the FP WHEB Sustainability Fund’s GBP net track record data is historical. No allowance has been made for buy/sell spreads. Past performance is not a reliable indicator of future performance. The value of the investment can go up or down.
2. The Fund incepted on 31 October 2007 as the Hunter Hall Global Deep Green Trust. The Fund was relaunched on 1 August 2017 as the Pengana WHEB Sustainable Impact Fund employing the WHEB Listed Equity strategy. This strategy was first employed on 1 January 2006 by the Henderson Industries of the Future Fund and currently by the FP WHEB Sustainability Fund.
3. Annualised standard deviation since inception.
4. Relative to MSCI World Total Return Index (net, AUD unhedged)
* For further information regarding fees please see the PDS available on our website.