Sustainable impact fund typically 10-15% of portfolio for ethical investors
Advisers who recommend the fund will typically have 10-15% of a client’s portfolio in the strategy due to its concentrated investment universe.
In the last year, the actively managed fund has reported positive environmental and social gains but a financial loss against its benchmark - a gross one year return of 4% against the benchmark’s 8% at the end of Q3. After fees (1.2% estimated), charges and tax, the return was 1.42%.
The fund, which has a 60/40 split of equities and fixed income (mostly green bonds), has around 150 securities - all of which map to one of the United Nations’ sustainable development goals (SDGs).
Di Leva says most of the performance of equity markets in the last 12 months has been with the largest companies (including the so-called magnificent seven which drove 85%), most of whom don’t meet the stringent criteria for an impact fund.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
