London-based investment house Fundsmith has launched a sustainable equity fund for institutional investors.
The Fundsmith Sustainable Equity Fund will be based around a segregated mandate that Fundsmith has run for the UK charity Comic Relief for the last three years and which has compounded in value by 23.9% annually.
The fund prospectus stipulates that the following sectors will not be invested in: aerospace and defence, brewers distillers and vintners, casinos and gaming, gas and electricity utilities, metals and mining, oil, gas and consumable fuels, pornography and tobacco.
Terry Smith, chief executive and chief investment officer of Fundsmith, said: “We have long felt that many investors who apply the commonly-used factors to identify sustainable investments do so at the expense of the long-term economic sustainability of a business.
“By marrying important sector exclusions with the proven sustainable investment process of Fundsmith we have shown that we can deliver superior investment performance.”
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