Our Philosophy and Process

We have been considering themes as a key part of our investment process since our inception in 1978. Themes seek to identify the major areas of structural change in the world. This structural change can be political, economic, social, technological, or environmental; its impact will manifest across traditional economic sectors, and will be significant in magnitude and long-term in duration. Themes are a critical element of our idea-generation process and, alongside evaluation of fundamentals and ESG considerations, constitute a key component of our valuation of securities.

For the Future Earth strategy, a significant area of structural change is environmental change.
The strategy is focused in particular on our Earth matters theme, which seeks to identify companies that are proactively contributing to an overall shift towards an operating model that will help protect the Earth’s environment and natural resources. We categorize these companies through four sub-themes: clean energy, efficient infrastructure, electric vehicles, and resource management & recycling.

Investment Team

Our Future Earth strategy is managed by a team with a wide range of backgrounds and varied experience. The portfolio management team is supported by experienced industry analysts and credit analysts. Our specialist responsible investment analysts also play an integral part in the investment decision-making process. Our investment professionals work as part of a single investment team, which promotes perspective on the investment landscape, strong idea generation, and the swift implementation of investment ideas.

Strategy Profile

Objective

The strategy aims to achieve long-term capital growth by predominantly gaining exposure to companies located worldwide which provide products, services and solutions that contribute towards reducing environmental and natural resource pressures on our Earth.

Performance Benchmark

MSCI AC World NDR

Typical number of Equity Holdings

30-50

Strategy Inception

January 2021
Future Earth Strategy Brochure US

Brochure

More detail on the strategy’s investment approach.

Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.

Key Investment Risks

  • There is no guarantee that the strategy will achieve its objective.
  • This strategy invests in global markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • The strategy may invest in emerging markets. These markets have additional risks due to less developed market practices.
  • A fall in the value of a single investment may have a significant impact on the value of the strategy because it typically invests in a limited number of investments.
  • The strategy may invest in small companies which may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.
  • The strategy may use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
  • The strategy follows a thematic investment approach, specifically focusing on companies that will benefit from areas associated with positive environmental impact, which may cause it to perform differently to strategies that do not integrate thematic environmental investment criteria when selecting securities.
  • The strategy follows a thematic investment approach, which typically leads it to focus on and invest in some industrial sectors more than others. This may cause it to perform differently to strategies that use a broader selection of investment themes as part of their security selection process.