FUND OF THE MONTH: Investec UK Sustainable Equity

by 15 Jan, 2020

In a brand new series with 3d Investing, every month we throw a spotlight on a sustainable investment fund, exploring its process, portfolio and performance to sort the stars from the spin.

This month 3d has pulled out Investec UK Sustainable Equity, a new fund launched in December 2018 and managed by Matt Evans. He and his team seek to invest in UK-based companies that are making a positive contribution to society and the environment through sustainable and socially responsible practices and services.

Vital fund statistics

Fund Name: Investec UK Sustainable Equity
3d Star Rating: 4 Stars
Investment Approach: Sustainability
Annual Fund Fee: 0.79%
Minimum Investment: £1 with AJ Bell YouInvest (other platforms available)

The 3d view

Investec UK Sustainable Equity is a leader amongst ethical and sustainable UK equity funds, with a clear focus on making a positive social impact. This was the first in Investec’s range of sustainable investment funds. It builds on Investec’s experience integrating environmental, social and governance (ESG) principles across all its investment strategies and managing impact funds in African private markets. Matt Evans has a clear commitment to and understanding of, sustainability. He considers his investments from three perspectives:

  1. Internal (the way businesses are run)
  2. Financial (long term delivery on financial expectations)
  3. External (positive social and environmental outcomes)

Sustainable investment areas

Investec UK Sustainable Equity:

SUSTAINABLE INVESTMENT AREA % OF FUND INVESTED
Positive Practices 19.53%
Limited Positive Impact 17.33%
Healthcare 14.25%
Resource Efficiency 10.96%
Education 7.63%
Inclusive & Ethical Finance 6.97%
Safety 6.28%
Enabling Infrastructure 2.40%
Clean Air & Water 2.14%
Social Infrastructure 1.90%
Renewable Energy 1.65%
Sustainable Transport 1.10%

Making a difference

Evans and his team engage actively with investee companies. This means they regularly meet with and talk to the management of the companies they invest in to find out how their products and services are benefiting the environment and society. Staying in touch also helps the team to spot potential risks from poor practices and to take advantage of buying opportunities. The Investec team also participates in advocacy programmes with other investors and organisations to raise standards in the finance industry and work together for change.

Impact of Investec UK Sustainability vs. FTSE 100 Index: 

INVESTMENT  SOLUTIONS POSITIVE PRACTICES PUBLIC FINANCE LIMITED BENEFITS HARMFUL IMPACTS
Investec UK Sustainability 55.29% 19.53% 0.00% 17.33% 0.00%
UK FTSE 100 Index 17.87% 25.72% 0.00% 24.84% 30.47%

Investment returns

Though we don’t recommend judging any investment by anything less than a three year return, Investec UK Sustainable Equity has had a stellar first year – returning 33% for investors in the 12 months to 31 December. This means that, had you invested £100 on 31 December 2018, by the end of last month that would have grown to £133.30.

INVESTMENT 1 YEAR RETURN 3 YEAR RETURN
Investec UK Sustainable Equity Fund 33.3% n/a
UK All Companies Fund Sector Average 21.8% 23.7%
FTSE 100 Index 17.3% 19.9%

Data sourced from FE Analytics. All figures are before fees charged by the fund and the platform you invest through.

Fund Summary

Investec UK Sustainable Equity:

  • High positive impact of investments vs. comparable funds
  • Positive influence on companies and within the industry
  • Low exposure to harmful industries

 

For info on how to invest in funds, check out our guide: ‘Make Responsible Investments in 4 Easy Steps

 

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DISCLAIMER: The information provided in this article shall not constitute or be deemed to constitute any invitation or inducement to any person to engage in investment activity.  Should you undertake any investment activity based on information within this article you do so entirely at your own risk.   The value of an investment in funds can fall as well as rise, as can any income payment received from an investment.   Any information relating to past performance is not a guide to future performance.  If you are unsure of an investment decision you should seek professional financial advice. 3D Investing is run by Ethical Money Limited which is a wholly owned subsidiary of Square Mile Investment Consulting and Research Limited.

About the author

About the author

John Fleetwood

John Fleetwood is director of responsible and sustainable investing at Square Mile Investment Consulting and Research