Issue 40 / May 2018
FE Trustnet
magazine
The only way is ethics
The issue investors can’t afford to ignore
50 SHADES OF GREEN
How ethical is your
ethical fund?
RISKY BUSINESS
An example for pension
savers to follow
NOT HOT AIR
The energy sector’s quiet
revolution
Fund, Pension, Trust / Sector Profile / Stockpicker / What I Bought Last
ISSUE 40
CREDITS
TRUSTNET MAGAZINE
(FORMERLY INVESTAZINE)
IS PUBLISHED BY THE TEAM
BEHIND FE TRUSTNET IN
SOHO, LONDON
WEBSITE: www.trustnet.com
EMAIL: editorial@financialex-
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CONTACTS:
Editor’s letter
T
he notion
that investing
ethically
comes at the expense
of financial returns
was almost taken for
granted when I began
my career in financial
journalism almost
eight years ago. One
financial adviser even
said that if someone
wanted to make a
positive impact on the
world, they would be
better off investing in a
mainstream fund and
giving away any excess
returns to charity, rather
than committing their
money to an ethical
vehicle which would be
lucky to break even.
However, with a body
of evidence suggesting
the opposite to be true,
a growing number of
fund managers – many
without any sort of
ethical mandate – are
52
Javier Otero
Art direction & design
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Sales
Richard Fletcher
Head of publishing sales
T: 0207 534 7662
Richard Casemore
Account manager
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Photos supplied by iStock
Cover illustration: Javier Otero
not match your own, and
Adam Lewis investigates
why the sector’s market
share hasn’t budged in a
decade.
Our regular columns
see the return of reader
favourite John Blowers
as he explains why
pension savers in the
UK could learn a thing
or two from their US
counterparts. Finally,
BMO’s Kelly Prior reveals
why she has bought Legg
50 shades of green growing in popularity, but many
misconceptions remain
Mason Western Asset
Structured Opportunities
and Hermes’ Martin
Todd names three UK
mid-cap stocks that
are casting their eye
towards the US.
Enjoy reading,
Anthony Luzio
Editor
Contents
Anthony Luzio
Editor
T: 0207 534 7652
Editorial
Gary Jackson
Editor (FE Trustnet)
T: 0207 534 7680
Rob Langston
News editor
T: 0207 534 7696
Jonathan Jones
Senior reporter
T: 0207 534 7640
Henry Scroggs
Reporter
T: 0207 534 7692
incorporating a focus
on ESG factors into
their stock-screening
process. In this month’s
cover story, I discover
how this can make you
money. Elsewhere on
this subject, Pádraig
Floyd finds out where
fund managers are
unearthing opportunities
in cleantech, Holly
Black reveals why your
fund manager’s idea of
ethical investing may
Ambiguity over what counts as
“ethical” means you will need
to check whether your fund
manager’s definition of the
word matches your own, writes
Holly Black
Anthony Luzio finds out why a
focus on ESG practices is no
longer the preserve of ethical
funds
P. 2-9
American excess
High valuations mean Bankers
Investment Trust’s Alex Crooke
is taking a selective approach
when allocating to the US
P. 10-15
Not hot air
Renewable energy is beginning
to challenge fossil fuels in
terms of price as well as
environmental impact. Pádraig
Floyd examines the funds
riding the cleantech wave
P. 16-19
The US, the UK and
company creation
The views of James Anderson,
joint manager of the Scottish
Mortgage Investment Trust
P. 20-23
Where’s the money gone?
Data hub Despite surging interest in
ethical and socially responsible
investing, Adam Lewis notes
the sector’s market share hasn’t
budged in a decade
P. 30-31 Risky business
P. 24-29
The only way is ethics
P. 38-41
Crunching the biggest trends
down into figures
Fund, Pension, Trust
R&M UK Equity Smaller
Companies, Montanaro UK
Income and North American
Income Trust find themselves
under the spotlight this
month
P. 32-37
Investing sustainably:
five myths debunked
Sustainable investing is
18
P. 42-49
AltRetire’s John Blowers says
pension savers in the UK could
learn a thing or two from their
US counterparts when it comes
to risk
P. 50-55
Pond dipping
Hermes European Alpha’s
Martin Todd names three UK
mid-cap stocks that are casting
their eye “across the pond”
P. 56-57
What I bought last
BMO’s Kelly Prior is using
Legg Mason Western Asset
Structured Opportunities to
diversify her sources of fixed
income without taking on
higher risk
P. 58-59