09 Jan 2023
Every month we study the universe of funds in the investment marketplace to assess whether they meet our exacting standards and should be given the RSMR seal of approval.
The Global Environment strategy seeks to invest in sustainable decarbonization by identifying the leaders across the world that are providing climate solutions.
The fund benefits from a proprietary process working with CDP to identify and quantify carbon avoided and define the investable universe for the fund. The use of Bloomberg Industry Classification Standards (BICS), as opposed to Global Industry Classification Standards (GICs), provides the level of sectoral granularity required for the team to apply their filter to identify companies suitable for inclusion. Three themes (renewable energy, electrification, resource efficiency) are identified as the key drivers in achieving net zero with underlying sub-themes within each key theme.
The managers are supported by analysts who are diverse in both background and experience. The team composition is intended to enable the broadest possible views to be taken on board, encouraging challenge and debate.
The fund is ahead of the wider market in the sense that it is factoring in (where available) scope 3 emissions with a full life cycle approach adopted to underlying products. However, the managers acknowledge that this is an area that is evolving, especially with the reporting required.
The FSSA All China Fund is a specialist mandate investing in both onshore and offshore China listed equities. It is managed by a team with an excellent record including in the domestic ‘A’ share market. The fund has the flexibility to move between different parts of the Chinese equity market according to opportunities and valuation.
Over the next decade, China will continue to see strong domestic consumption growth driven in part by premiumisation of products. After the market setback last year, valuations have fallen to attractive levels by historic standards and with the abandonment of the zero Covid-19 policy, China offers investors an economy with recovery potential in 2023. The fund combines quality with valuation support and has a strong record of downside protection in difficult market periods and should deliver strong capital growth over the longer term.
This is a value orientated fund run by an experienced manager with a strong long-term record which can be regarded as a core holding in the sector. The team managing the fund has worked together for many years and look at stocks on a pan Asian basis.
The fund takes a differentiated approach combining valuation awareness with the perceived mispricing of risk. Stocks with strong risk/reward prospects in terms of potential upside are at the core of the fund. The fund takes a multi-cap approach which can unearth opportunities in under researched names and has an active engagement programme with companies held in order to improve returns on client’s capital. The fund has a focus on delivering capital growth to investors over medium-term periods.
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The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.