Living Planet Fund - Global Equity
Living Planet Fund – Global Equity is a global equity fund that invests in 50 to 70 best-in-class companies that meet stringent business and financial performance criteria and whose corporate social and environmental policies align with our values. Preference is given to companies operating in conservation and sustainability-related sectors. We do not invest in industry sectors which we consider as potentially harmful to people or nature.
The portfolio is structured around themes that reflect the mega challenges of the 21st century. These include population growth and the aspirations of developing societies; energy consumption and global warming; environmental conservation, sustainable use of global resources; food and water; and urban management. These themes reflect financial judgement as well as beliefs: global demand for relevant products and services is likely to increase and the stock of companies that provide them have the potential to offer investors better than average returns in the mid to long term.
We use the components of the MSCI World index as a starting point – this widely-used benchmark of leading stocks quoted on the exchanges of developed countries lists over 1,500 companies. Preliminary analysis indicates that approximately 800 of these comply with broad RI (Responsible Investment) criteria.
Our partners at Bank Sarasin review the economic potential of companies. Companies must have a market capitalization of at least US$500 million to ensure liquidity and a positive cash flow and earnings history. We analyze relative performance against competitors and sector growth opportunities to identify promising investment targets from a purely business perspective.
Our information sources include company reports; analyst briefings; independent research reports; media monitoring and news services, Internet material and specialized electronic media; company visits and management contacts as well as custom research and input from specialized research institutes and NGOs.
We then assess in more detail the social and environmental policies of these targets according to the following criteria:
We work closely with our asset managers to define ‘themes’, promising business sectors where the power of investments can make a significant contribution towards resolving environmental and sustainability challenges. This also makes sense from a financial perspective: global demand for environmentally-relevant products and services is likely to increase and the shares of well-managed enterprises in these sectors should offer investors better than average returns in the mid to long term.
The portfolio is structured around themes that reflect the mega challenges of the 21st century. These include population growth and the aspirations of developing societies; energy consumption and global warming; environmental conservation, sustainable use of global resources; food and water; and urban management. These themes reflect financial judgement as well as beliefs: global demand for relevant products and services is likely to increase and the stock of companies that provide them have the potential to offer investors better than average returns in the mid to long term.
We use the components of the MSCI World index as a starting point – this widely-used benchmark of leading stocks quoted on the exchanges of developed countries lists over 1,500 companies. Preliminary analysis indicates that approximately 800 of these comply with broad RI (Responsible Investment) criteria.
Our partners at Bank Sarasin review the economic potential of companies. Companies must have a market capitalization of at least US$500 million to ensure liquidity and a positive cash flow and earnings history. We analyze relative performance against competitors and sector growth opportunities to identify promising investment targets from a purely business perspective.
Our information sources include company reports; analyst briefings; independent research reports; media monitoring and news services, Internet material and specialized electronic media; company visits and management contacts as well as custom research and input from specialized research institutes and NGOs.
We then assess in more detail the social and environmental policies of these targets according to the following criteria:
- Societal considerations: public commitment on social standards; relationship with employees, suppliers and other stakeholders; health and safety; employment policies; community involvement.
- Environmental considerations: corporate policies; compliance with legislation; environmental impact statements; and use of environmental management systems.
- Production processes and product life cycles: energy efficiency and sustainability; emissions control; elimination of pollutants and harmful chemicals; water management; waste minimization; recycling.
- Certification: compliance with recognized standards such as ISO 14001; Forest Stewardship Council; Marine Stewardship Council; International Labour Organization.
We work closely with our asset managers to define ‘themes’, promising business sectors where the power of investments can make a significant contribution towards resolving environmental and sustainability challenges. This also makes sense from a financial perspective: global demand for environmentally-relevant products and services is likely to increase and the shares of well-managed enterprises in these sectors should offer investors better than average returns in the mid to long term.
Child holding a small wind turbine to show that it is the solution for a sustainable future energy, Charleroi, Belgium
