This blog is designed to record the investment journey of a UK based small investor. I hope to make a modest contribution to the collective wealth of investing knowledge made freely available to ordinary people. I am the author of four books [see sidebar and books tab]
I came across this investment fund whilst
researching the spectrum of sustainable investments for the second part of
'Investing for a Green Future' last November.
This is a managed globally diverse equity fund. All
holdings in the fund are exclusively attempting to offer solutions to creating
a sustainable, low carbon environment.
It has been going since 2009 and is run by a small
partnership who have an investment in the fund which I like to see as it aligns
the management interest with that of investors. Here's an interesting post by
one of the founding members, George Latham
The fund is focused on a number of themes which
include clean energy, resource efficiency, sustainable transport and water
management as well as a number of social aspects including education and
health. It was a top-rated fund in Ethical Consumer's funds table (2018)
The fund is very transparent and publishes details
on each and every company it invests in. It has also launched an impact
calculator which allows investors to see how their investment in the fund is
helping the environment.
Here's a link to the latest factsheet (pdf) for end February 2019.
Total return for the WHEB fund over the past 5 years is 60% or average 9.8% per year which compares well against the FTSE All Share index of 30% and 5.4% p.a.
The fund is held in my ISA and was purchased with the proceeds from the sale of my Smithson Investment Trust. Purchase price was 208p.
5 yr chart v FTSE All Share Index (blue line)
(click to enlarge)
Last week, the world's largest sovereign wealth
fund which manages $1 trillion (£780bn) of Norway's assets, announced it would remove
investments in holdings involved in oil/gas exploration. This will involve the
sale of 134 companies including UK-listed Tullow Oil, Premier Oil, Soco
International and Ophir Energy. “The objective is to reduce the vulnerability of
our common wealth to a permanent oil price decline,” said Norway’s finance
minister, Siv Jensen.
The share price of Premier Oil has fallen by 33% over the past 6 months - 4% on Friday following the announcement.
This represents a shot across the bows of the oil
& gas sector and the large fund managers will be taking note and thinking
of ways to climate-proof their portfolios which could accelerate very quickly
as pressure mounts for action on global warming.
As many billions of dollars are released from the
sale of such investments, the question to be asked is where will it be
reinvested? My guess would be into sectors which are providing solutions to
tackle the climate crisis - clean energy, sustainable transport and technology
which supports a low carbon future.
This addition pushes my green allocation to over
20% which is far more than I was planning at the start of this year. Eagle-eyed readers may have noticed I have now included a 'green' tab to keep track of the various articles relating to this growing sector of my portfolio.
As ever, this article is merely a record of my personal investment decisions and should not be regarded as an endorsement or recommendation - always DYOR!