Rated # 1 ethical/sustainable fund by Zenith
Read the media release detailing the announcement here.
The Value Growth Trust invests in a portfolio of global companies, diversified across geographies, industries and company sizes.
The Fund is long-only, benchmark independent and typically holds 30-50 companies. The mandate allows investment across geographies, industries and company sizes. The companies considered for inclusion in the portfolio demonstrate large and growing free cash flow generation, and are priced attractively relative to their cash flow.
The portfolio is created from the 30-50 stock ideas that work best together, rather than just the 30-50 best ideas.
The Fund utilises a negative screening process which seeks to avoid investment in companies that derive operating revenues from direct and material business involvement in the following sectors:
the manufacture or sale of weapons and weapon components,
gambling outlets or systems,
intensive animal farming,
animal testing for cosmetics,
activities that give rise to human rights violations,
unremediated destruction of the environment,
uranium mining and nuclear reactors, and
fossil fuel exploration, production, refining, storage and transportation.
The investment team develops an understanding of the opportunities using detailed research covering financial statements, company meetings and external research. Companies that meet the investment criteria are divided into three segments:
Core (60-80%): are stable and growing businesses that generate consistent returns.
Cyclical (0-30%): businesses operating in cyclical industries that are posed for a cyclical upturn, which is not recognised in the share price.
Opportunistic (0-20%): are unique, company specific situations that offer attractive potential upside.
Benefits of investing
Skilled investment team. The investment team has over 90 years of combined experience investing in global equities and has developed a successful and repeatable investment process.
A truly active fund. A relatively concentrated portfolio that is selected purely on investment merits rather than index weight.
Investment in high quality businesses at compelling valuations. The Fund aims to invest in businesses with compelling business models, that consistently generate large and growing sums of cash.
Focus on risk and return. The portfolio focuses on 30-50 stocks that work together, with sufficient concentration to deliver returns and sufficient diversification to reduce risk.
Investment approach that is suitable across market environments. The investment team invests across different geographies, industries and company sizes and can adjust to changing market environments.
Ethical process. Negative ethical screens exclude industries that, in our opinion, can cause harm to people, animals or the environment. Integration of ESG factors into the research process directs investments to well-managed, responsible and progressive companies.