WHEB has long had an ambition to provide our investors and other stakeholders with a detailed account of the positive impact that our products are having in the world. We know our investors want to understand what impact their investments are having, and so the publication of our first annual impact report in April 2015 is principally for them.
In the report we cover the impacts that WHEB funds are having in tackling critical environmental challenges. For example:
- WHEB’s infrastructure portfolio has generated estimated annual savings of nearly 74,000 tonnes of carbon dioxide through renewable energy projects.
- Investing £1m in the FP WHEB Sustainability Fund has a carbon footprint that is nearly 70% lower than an equivalent investment in the MSCI World Index.
- Annual air emissions were reduced by 400 metric tonnes through the products and services supplied by WHEB’s private equity portfolio companies; an amount equivalent to the emissions generated by the power consumption of 34,700 UK residents.
- We also introduce a new framework for mapping economic activity ranging from ‘Degenerative’ activities on the one-hand through to ‘Breakthrough’ businesses on the other.
The full report provides a range of quantitative data on the contribution that each of our products makes in tackling key environmental and social issues. We see this data as useful, not just in demonstrating the integrity of our products, but because we think it underlines the opportunity facing these companies and the industries of which they are a part.
The world desperately needs more of the products and services that these businesses supply. Growth in areas such as water and waste treatment, energy efficiency, renewable energy, healthcare and education is critical in order to ensure the continued availability of scarce resources and manage an ageing global population.
For investors looking for growth, looking at these social and environmental themes is a good place to start. The five year historical sales growth of companies with revenues from sustainability themes is over 10% compared with less than 8% for companies in the MSCI World Index. Looking forward over the next twelve months, the figures are even starker, with nearly sales growth of nearly 14% for companies with sustainability theme exposure and just over 8% for companies in the MSCI World Index[i].
The ‘old school’ view of sustainability investing argues that you have to trade-off financial value for your ‘values’. In reality, finding companies that have positive impact in the world is a route to identifying higher growth. In effect, it is because of their positive social or environmental impact that these companies represent promising investment opportunities. In a world that isn’t growing very much, this could be very valuable indeed.
To read the full report, please click here.
[i] Bloomberg and WHEB internal analysis.
Risks include: the price of shares (“Shares”) in FP WHEB Sustainability Fund (“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 is not a guide to 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 Fund’s benchmark). For full risks, please see fund prospectus on www.whebgroup.com.
General: This blog, its contents and any related communication (altogether, the “Blog”) 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, 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 otherwise; any such investment decision should be made only on the basis of the Fund scheme documents and appropriate professional advice. This Blog 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 Blog 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 Blog 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. 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 8-9 Lovat Lane, London EC3R 8DW. The state of the origin of the Fund is England and Wales. The Representative in Switzerland is ACOLIN Fund Services AG, Affolternstrasse 56, CH-8050 Zurich, whilst the Paying Agent is Bank Vontobel Ltd, Gotthardstrasse 43, CH-8022 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.
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