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The Evelyn Partners Sustainable Managed Portfolio Service (MPS) has added two new funds in the Trium Climate Impact and Regnan Sustainable Water and Waste Funds as part of its latest re-balance.
While the Sustainable MPS team believes that equities are “broadly attractive”, it has primarily continued to allocate to US and core-style global equity funds.
The team added positions in the FTGF ClearBridge US Equity Sustainability Leaders and Brown US Sustainable Growth funds.
In global equities, the team added to holdings in the Impax Environmental Markets, Schroder Global Sustainable Value, CT Responsible Global Equity, Baillie Gifford Responsible Global Equity Income and Federated Hermes Global Equity Funds.
On the two new holdings, Philippa Douglas, assistant manager of the Evelyn Partners Sustainable MPS, said: “Across all models we switched from the JPM Global Macro Sustainable fund into Trium Climate Impact fund in the Absolute Return allocation. Trium Climate Impact is a market neutral hedge fund which invests in mid and large cap climate solutions in its long book and hedges out volatility, factor and style risk in its short book.
“The team seeks significantly higher avoided emissions than direct emissions in potential investee companies, as well as contributions to clean water, ;ess waste, the circular economy and improved efficiencies. The fund targets a return of cash plus 6-8% and volatility of 6-8% with low correlation to traditional asset classes and driving positive environmental outcomes.”
Douglas added: “Within the moderate to higher risk models we switched out of the RobecoSAM Smart Materials into the Regnan Sustainable Water and Waste fund. This reflects our preference for the more defensive nature of the water and waste theme, which is integral to daily life throughout the economic cycle, as well as the structural growth drivers for these sectors as global population increases and urbanises.
“Additionally, the team’s focus on quality characteristics of businesses and the sustainability of their investee companies’ operations reflects our own investment philosophy well.”
