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Commentary General

A New Era for London and Brussels

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The past is a foreign country; they do things differently there. It is only four-and-a-half years since the UK decided to leave the European Union, which it finally did at the end of last month. But so much has changed since 2016 that it can feel like peering back into a different age.

Then, it would have seemed impossible that the eventual Brexit deal would be the first trade deal in the world to enshrine a climate obligation.

And yet, here we are: both sides have affirmed their commitment to climate neutrality by 2050, in the very text of the deal. Any derogation from this commitment can result in trade actions by the other side. Stronger still, it could ultimately lead to the termination of the agreement.

But then, in June 2016 it would have seemed far-fetched that the UK could ban internal combustion engine sales by 2030. Or plan to install 40GW of offshore windpower by the same date. Or indeed, have been the first G7 country to make a net zero carbon commitment, as long ago as the summer 2019.
And of course, no-one would have predicted that we would stumble out of the EU amid the first truly global pandemic in modern times. An event so profound that it finally sucked the oxygen from our national self-immolation around Brexit.

Although now that we look into it, we see epidemiologists had warned us that this could happen at any time. But like climate scientists, they were struggling to be heard.

Indeed, in the distant land of 2016, we were encouraged to ignore experts of all kinds. We do things differently now. That view is returning to a more sober approach, either in climate or pandemic policy.
So experiences unfold and priorities change. And as different as 2016 was to today, so the future will be another country again. The Brexit deal doesn’t define the new UK-EU relationship. It just starts the process of finding that out.

Here at WHEB, we think that starting point seems quite sensible. The basic deal is that environmental and social protections are not to be reduced below the levels in place when the deal was signed. And if they are, then there is a “rebalancing” mechanism that the other side can apply, on an equal footing.

This isn’t quite the level of protection that some observers, fearful of backsliding by the UK government, might have wished for. Full equivalence would have meant both sides had to match each other. And strictly speaking the measures only apply to removing protections that have an impact on trade. And there are other detailed points which could alarm us as environmentalists. If you want to find them.

But, with a bit of goodwill and good intentions, it could easily be enough. For WHEB’s portfolio investments, the impacts of Brexit have in reality been very limited. The strategy has a low level of exposure to the UK economy. Anaemic domestic markets have little direct bearing on strategy performance. Changing regulations have required us to launch a new fund structure to accommodate our EU-based investors. As tortuous as this has felt, it is small beer compared to the experience of many.

Ultimately, the UK and its largest and closest partner still share a host of real sustainability challenges. While no longer a part of the EU, we will still need to find new ways to tackle them together.

And eventually we will perhaps look back at the chaos of 2020 and be amazed at how different things were then.

Important Notices:
Risks include: the price of shares (“Shares”) in FP WHEB Sustainability Fund, WHEB Sustainable Impact Fund or WHEB Environmental Impact Fund may increase or decrease and you may not get back the amount originally invested, for reasons including adverse market and foreign exchange rate movements. Past performance does not predict future returns. The Fund invests in equities and is exposed to price fluctuations in the equity markets, and focuses on investments in mid-sized companies in certain sectors so its performance may not correlate closely with the MSCI World Index (the benchmark). For full risks, please see fund prospectus on www.whebgroup.com

 

General: This information, its contents and any related communication (altogether, the “Information”) is issued by WHEB Asset Management LLP (“WHEB Asset Management”). It is intended for information purposes only and does not constitute or form part of any offer or invitation to buy or sell any security including any shares in the FP WHEB Sustainability Fund or WHEB Sustainable Impact Fund, including in the United States. It should not be relied upon to make an investment decision in relation to Shares in the FP WHEB Sustainability Fund or WHEB Sustainable Impact Fund or otherwise; any such investment decision should be made only on the basis of the Fund scheme documents and appropriate professional advice. This Information does not constitute advice of any kind, investment research or a research recommendation, is in summary form and is subject to change without notice. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming shares. WHEB Asset Management has exercised reasonable care in preparing this Information including using reliable sources, however, makes no representation or warranty relating to its accuracy, reliability or completeness or whether any future event may or may not occur. This Information is only made available to recipients who may lawfully receive it in accordance with applicable laws, regulations and rules and binding guidance of regulators. WHEB Asset Management LLP is registered in England and Wales with number OC 341489 and has its registered office at 7 Cavendish Square, London, W1G 0PE. WHEB Asset Management LLP is authorised and regulated by the Financial Conduct Authority with Firm Reference Number 496413.

 

FP WHEB Sustainability Fund

FundRock Partners Limited (formerly Fund Partners Limited) is the Authorised Corporate Director of the Fund and is authorised and regulated by the Financial Conduct Authority with Firm Reference Number 469278 and has its registered office at 6th Floor Bastion House, 140 London Wall, London, EC2Y 5DN. The state of the origin of the Fund is England and Wales. The Representative in Switzerland is ACOLIN Fund Services AG, Leutschenbachstrasse 50, CH-8050 Zurich, whilst the Paying Agent is NPB Neue Privat Bank AG, Limmatquai 1/am Bellevue, P.O. Box, 8024 Zurich . The relevant documents such as the prospectus, the key investor information document (KIIDs), the Articles of Association as well as the annual and semi-annual reports may be obtained free of charge from the Representative in Switzerland.

 

WHEB Sustainable Impact Fund

The Manager of the Fund is FundRock Management Company S.A., authorised and regulated by the Luxembourg regulator to act as UCITS management company and has its registered office at 33, rue de Gasperich, L-5826 Hesperange, Grand-Duchy of Luxembourg. The Representative in Switzerland is ACOLIN Fund Services AG, Leutschenbachstrasse 50, CH-8050 Zurich, whilst the Paying Agent is NPB Neue Privat Bank AG, Limmatquai 1/am Bellevue, P.O. Box, 8024 Zurich. The relevant documents such as the prospectus, the key investor information document (KIIDs), the Articles of Association as well as the annual and semi-annual reports may be obtained free of charge from the representative in Switzerland. The state of the origin of the Fund is Ireland. The Fund is registered for distribution to professional investors in Austria, France, Germany, Italy, Luxembourg, Norway, Singapore, Sweden and the United Kingdom, and is registered for offering to retail investors in Switzerland, Denmark and the Netherlands. The Fund is also available for professional investors in Belgium and Hong Kong. It is not available to investors domiciled in the United States.

 

WHEB Environmental Impact Fund

The Manager of the Fund is FundRock Management Company S.A., authorised and regulated by the Luxembourg regulator to act as UCITS management company and has its registered office at 33, rue de Gasperich, L-5826 Hesperange, Grand-Duchy of Luxembourg. The Fund is registered for distribution to professional investors in the United Kingdom. It is not available to investors domiciled in the United States.

 

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