Premier Miton Global Sustainable Funds – Designed to deliver positive outcomes

Duncan Goodwin

Manager of the Premier Miton Global Sustainable Fund range

Tell us about why these funds were launched?

We launched our Global Sustainable Fund Range three years ago with positive outcomes for investors front and centre. The holdings in the funds offer a better ESG (Environmental, social, governance) quality score, lower carbon intensity and increased levels of female leadership against a traditional non-ESG comparator.

Tell us a little about the process behind these funds.

The Global Sustainable Fund Range is built on a process that puts ESG factors first. Our global sustainable funds are underpinned by the breadth and depth of our research resources, our data-driven insight, and the scale and reach of our investment stewardship programme.

The investment philosophy and process is a simple one. The way companies manage ESG factors affects not only their financial results but the long-term viability of our environment and way of life. Businesses offering sustainable products and services the world needs are well positioned to potentially capture future consumption trends.

And on to the process, how does this capture ESG factors?

Since the two funds – Premier Miton Global Sustainable Growth and Premier Miton Global Sustainable Optimum Income – changed their mandate in 2020 to focus on sustainable investing they have been grounded in a simple and repeatable process. We are looking for companies that want to drive and benefit from a positive social or environmental change. We invest in companies that aim to help solve social or environment problems, as well as generating a financial return.

ESG has attracted a lot of investment headlines, it is a broad and growing area – how do you break it down?

We use ESG themes strongly and an important part of this is to recognise when new themes are emerging, as you mentioned it is a broad and growing investment area. Within the funds we currently have seven core ESG themes:

  • Financial inclusion: defined by the outcome of individuals and businesses having access to useful and affordable financial products and services that meet their needs; transactions, payments, savings, credit and insurance – all delivered in a responsible and sustainable way.

 

  • Health & wellbeing: here we look for business leaders investing in the resilience and well-being of their workers, paying particular attention to issues that affect the health, community, economic stability, education.

 

  • Energy transition: this is typified by the global energy sector’s shift from fossil-based systems of energy production and consumption, including oil, natural gas and coal, to renewable energy sources like wind and solar, as well as lithium-ion batteries.

 

  • Infrastructure: The transition to a low-carbon economy is estimated by the United Nations Principles for Responsible Investment to need at least US$7 trillion annually. Much of this would be for upgraded and new global infrastructure, particularly infrastructure to support alternative or renewable energy distribution and ’green cities.’

 

  • Food productivity & safety: ESG factors have become increasingly important in the food and beverage industry as businesses come under investor scrutiny and face mounting pressure from environmentally and socially conscious consumers, increased legislation and reputational risks.

 

  • Circular economy: A circular economy is a model of production and consumption that tackles global challenges, such as climate change, biodiversity loss, waste, and pollution, by circulating products and materials.

 

  • Education: The aim here is to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

 

Looking to next year there are a couple of themes we have been tracking but not yet invested in, digital transformation and water. Both meet criteria of a clear positive impact to society and clear alignment with sustainable development goals.

What does ESG offer an investor looking to achieve a wealth management goal?

Our investment conviction is that ESG-integrated portfolios can provide better risk-adjusted returns to investors over the long-term, and that ESG-related data provides an increasingly important set of tools to identify unpriced risks and investment opportunities.

ESG measures help inform the due diligence, portfolio construction, and monitoring processes of our Premier Miton Global Sustainable Growth and Premier Miton Global Sustainable Optimum Income funds, as well as our approach to risk management.

Finally, why would an investor consider Premier Miton’s Global Sustainable Funds?

We believe there are several features that differentiate Premier Miton’s Global Sustainable Funds and they should be part of any adviser-client conversation around the funds.

The funds are currently investing in seven themes. There is no overriding exposure to one sector. The funds are not tech funds, green energy funds or healthcare funds. In a volatile and potentially directionless market, we believe breadth and diversity of an investment solution is going to be key.

We have an investment thread within the funds focused on small, innovative and potentially high growth companies. We believe that these companies have the potential to change and disrupt industries and have a positive impact on both fund performance and society.

Finally, within a market context, during these periods of change and pivots of direction, this may be a period where an active approach to fund management can really pay dividends.

With these funds, advisers should feel confident talking to their clients about the strategy of investing globally, with a sustainable focus, being the correct approach. From the acceleration in the adoption of alternative energy, the reshoring of supply chains or the need for improved business efficiency, the long-term trends on which the funds are based are aligned in our view with the need of governments, businesses, people and the planet.

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Risks

The value of investments may fluctuate which will cause fund prices to fall as well as rise and investors may not get back the original amount invested.

The Premier Miton Global Sustainable Growth and Premier Miton Global Sustainable Optimum Income funds may experience high volatility due to the composition of the portfolio or the portfolio management techniques used.

Funds that follow a sustainable investment approach exclude companies which do not meet their sustainability criteria from the investment universe and therefore can carry a higher risk than funds with a more diversified portfolio.

Infrastructure investments are often in large-scale projects whose profitability can be affected by supply problems or rising prices for raw materials or natural resources. Changes in the wider economy and government regulation can also have a significant influence.

Future forecasts are not reliable indictors of future returns.

IMPORTANT INFORMATION:

For Investment Professionals only. Not for onward distribution. No other persons should rely on the information provided.

Whilst every effort has been made to ensure the accuracy of the information contained within this document, we regret that we cannot accept responsibility for any omissions or errors. The information given and opinions expressed are subject to change and should not be interpreted as investment advice.

Persons who do not have professional experience in matters relating to investments should not rely on the content of this document.

A free, English language copy of the Prospectus, Key Investor Information Document and Supplementary Information Document are available on the Premier Miton website, or copies can be requested by calling 0333 456 4560 or emailing [email protected]

Financial promotion issued by Premier Portfolio Managers Limited (registered in England no. 01235867), authorised and regulated by the Financial Conduct Authority, a member of the Premier Miton Investors marketing group and a subsidiary of Premier Miton Group plc (registered in England no. 06306664). Registered office: Eastgate Court, High Street, Guildford, Surrey GU1 3DE.

008514/301222

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This section of the website and the content it contains is for professional financial advisers only and should not be relied upon, or circulated to, retail clients. Retail clients should refer to the Private Investor's site.

The content of the pages of this website is for your general information and use only. It, and the products and services described within it, are subject to change without notice. We shall not be liable to you, or any third party, for any amendment, modification, suspension or discontinuance of any product or service described on our website. Neither we, nor any third parties, provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or appropriateness of the information and materials made available on this website.

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The information contained on this website does not constitute an offer or solicitation to sell shares in the funds or portfolio or to provide you with other products or services. Any application or investment must only be made on the basis of the relevant documentation of the investment, such as, for example, terms and conditions. The information on this website does not constitute any investment, tax, legal or other advice. Persons who do not have professional experience in matters relating to investments should always consult with an independent financial adviser before making an investment decision. Any opinion expressed on individual funds, services or products, represent the views of the individual at the time of preparation and should not be interpreted as a personal recommendation to buy or sell or otherwise trade all or any of the investments that may be referred to.

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Disclaimer

This section of the website and the content it contains is for retail clients only and by persons who are resident in the United Kingdom [who are not US persons]. Professional advisers should refer to the Professional Advisers site.

The content of the pages of this website is for your general information only. It, and the products and services described within it, are subject to change without notice. We shall not be liable to you, or any third party, for any amendment, modification, suspension or discontinuance of any product or service described on our website. Neither we, nor any third parties, provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or appropriateness of the information and materials made available on this website.

You acknowledge that such information may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law. Your use of any information or materials is entirely at your own risk, for which we shall not be liable.

The information contained on this website does not constitute an offer or solicitation to sell or purchase shares in the funds or portfolios or to provide you with other products or services. Any application or investment must only be made on the basis of the relevant documentation of the investment, such as, for example, terms and conditions. The information on this website does not constitute any investment, tax, legal or other advice. Persons who do not have professional experience in matters relating to investments should always consult with an independent financial adviser before making an investment decision. Any opinion expressed on individual funds, services or products represent the views of the individual at the time of preparation and should not be interpreted as a personal recommendation to buy or sell or otherwise trade all or any of the investments that may be referred to.

Website terms of use: Please ensure you have read and accept the full 'website terms of use' before continuing.

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Disclaimer

This section of the website and the content it contains is for professional financial advisers only and should not be relied upon, or circulated to, retail clients. Retail clients should refer to the Private Investor's site.

The content of the pages of this website is for your general information and use only. It, and the products and services described within it, are subject to change without notice. We shall not be liable to you, or any third party, for any amendment, modification, suspension or discontinuance of any product or service described on our website. Neither we, nor any third parties, provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or appropriateness of the information and materials made available on this website.

You acknowledge that such information may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law. Your use of any information or materials is entirely at your own risk, for which we shall not be liable.

The information contained on this website does not constitute an offer or solicitation to sell shares in the funds or portfolio or to provide you with other products or services. Any application or investment must only be made on the basis of the relevant documentation of the investment, such as, for example, terms and conditions. The information on this website does not constitute any investment, tax, legal or other advice. Persons who do not have professional experience in matters relating to investments should always consult with an independent financial adviser before making an investment decision. Any opinion expressed on individual funds, services or products, represent the views of the individual at the time of preparation and should not be interpreted as a personal recommendation to buy or sell or otherwise trade all or any of the investments that may be referred to.

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