Rathbone Unit Trust Management is set to launch a sustainable equity fund in July this year to boost its ethical offering.
The new fund will be called the Rathbone Global Sustainability fund and will aim to beat the FTSE World index over the long-term using equities that pass Rathbone’s ethical screening process.
David Harrison will run the fund with the aid of the equity team, while also making use of Rathbone’s dedicated ethical and sustainable division, Rathbone Greenbank Investments, to provide assistance with ethical screening.
Harrison, who joined Rathbones in 2014, has experience in investing with an environmental, social and corporate governance (ESG) focus from his previous roles at Hermes Investment Management and Merrill Lynch Portfolio Managers.
Rathbone’s chief executive Mike Webb said: “David has many years’ experience as a specialist in this field.
“This, combined with his skill in portfolio construction and the expertise of Rathbone Greenbank Investments, spanning over 20 years, should mean a compelling new offering for our clients.”
Rathbone Global Sustainability’s objective will fall in line with the UN Sustainable Development Goals and will not only avoid unethical companies but will seek out those that are committed to making a positive change in areas including health and wellbeing, sustainable innovation and infrastructure and energy and climate.
Source: Rathbone Unit Trust Management
In terms of investment process, the new fund will follow a similar investment style to that of Carl Stick and Rathbone’s income team, who focus on investing in companies that are cash-rich and have good fundamentals.
Harrison said: “We believe fundamentally strong businesses that are making a tangible positive impact are well-positioned to deliver long-term value creation for investors.”
The fund will typically hold between 30-50 equities across the cap spectrum and, although not a goal of the fund, it may produce income.
Currently, Rathbone’s offer one ethical fund, the £1.1bn Rathbone Ethical Bond fund, which has produced top quartile performance over the past one, three, five and 10 years among its IA Sterling Corporate Bond peers.
Rathbone Global Sustainability will sit in the IA Global sector and offer two share classes with an ongoing charges figure either of 0.90 or 0.65 per cent and a minimum investment of £1,000.