Can you give a brief overview of your strategy in terms of what you are trying to achieve for investors, your investment process and the make-up of the investment team?
The Premier Miton Global Sustainable Growth Fund invests in a focused portfolio of sustainable growth companies worldwide.
We have a clear investment philosophy. We believe that companies that can deliver sustainable growth responsibly have the potential to generate superior shareholder returns.
Stock selection is based on our investment process that incorporates environmental, social and governance (ESG) as well as sustainability related considerations alongside detailed financial analysis.
We consider ESG and sustainability at every stage of the investment process, from idea generation, company selection and portfolio construction as well as portfolio monitoring and review.
We focus on the identification of long-term sustainable growth opportunities at both a thematic and company level. We do this through in-depth analysis of high growth sectors with a particular focus on innovation and disruption.
Within those sectors, we then undertake analysis on individual companies that we believe offer market leading risk reward profiles.
In addition, we aim to invest in companies that have a clear and identifiable alignment with the UN Sustainable Development Goals.
The team consists of three investment managers working directly on the product. We also liaise with the other investment teams within Premier Miton covering Europe, UK and US regionally as well as the global small cap team.
How are you positioning your portfolio for the rest of the year and looking ahead to 2022?
The fund is currently invested in eight investment themes which are aligned with the UN Sustainable Development Goals; energy transition, financial inclusion, infrastructure, health and wellbeing, circular economy, food productivity and safety, gender equality and education.
These themes are deliberately broad and varied to ensure sector as well as regional diversification.
Post COP26 and current power crisis, particularly in Europe, we see energy transition as one of the most important investment themes for the next 12 months and beyond. We believe that current power market conditions will not only accelerate the transition of power and energy away from carbon but also increase the domestication of power as countries look to increase energy independence.
In addition to alternative energy, the fund should benefit from the greater focus on energy efficiency in buildings as well as the decarbonisation of harder-to-reach heavy industries such as steel and cement via newer, emerging technologies such as carbon capture and storage and fuel cells. The fund also has positions in the decarbonisation of transport via the development of Lithium Ion as well as solid-state batteries.
Can you identify a couple of key investment opportunities for your fund you are playing at the moment in the portfolio? This could be at a stock, sector or thematic level.
We see the move to a more circular economy as an interesting investment theme. Two investment ideas in the industrial and consumer sectors related to this theme are Befesa and Renewcell respectively.
Befesa is a German listed company that recovers industrial waste from steel mills. The company processes the waste via its proprietary SDHL-Waelz process into waelz oxide (WOX) sold to zinc smelters. The process results in the environmental benefits of avoiding the landfill of EAF dust and a reduction in zinc mining. The company is establishing a presence in China and has started its first plant with a second in construction. The company has regulatory support given steel dust waste is a hazardous material. Befesa is looking to expand its presence in China well beyond two facilities thus providing a clear roadmap for growth over the next decade.
The second company is Renewcell, the Swedish listed textile recycling company. Again, the company has proprietary technology that can use 100% recycled textiles in producing new fibre. This enables the reduction of the carbon footprint within the fashion industry via the avoidance of using virgin fibre. This company is relatively new to the public markets having IPO'd in November of last year.
Click here for more information about the Premier Miton Global Sustainable Growth Fund.
IMPORTANT INFORMATION: For information purposes. The views expressed are those of the fund manager at the time of writing and are subject to change without notice. They are not necessarily the views of Premier Miton Investors and do not constitute investment advice. Persons who do not have professional experience in matters relating to investments should always speak with a financial adviser before making an investment decision. For your protection, calls may be monitored and recorded for training and quality assurance purposes.
About Premier Miton Investors
Premier Miton Investors is focused on delivering good investment outcomes for investors through relevant products and active management across its range of investment strategies, which include multi-asset, equity, absolute return and fixed income.
Issued by Premier Miton Investors. Premier Portfolio Managers Limited is registered in England no. 01235867. Premier Fund Managers Limited is registered in England no. 02274227. Both companies are authorised and regulated by the Financial Conduct Authority and are members of the ‘Premier Miton Investors' marketing group and subsidiaries of Premier Miton Group plc (registered in England no. 06306664). Registered office: Eastgate Court, High Street, Guildford, Surrey GU1 3DE.
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