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EdenTree Responsible and Sustainable Managed Inc Class B - Income (GBP)

Sell:128.40p Buy:128.40p Change: 0.30p (0.23%)
Prices as at 18 April 2024
Sell:128.40p
Buy:128.40p
Change: 0.30p (0.23%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
Prices as at 18 April 2024
Sell:128.40p
Buy:128.40p
Change: 0.30p (0.23%)
Prices as at 18 April 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

In November 2021, the managers of this fund, formerly known as EdenTree Higher Income, added a responsible and sustainable investment screen to the fund's existing investment process. This change was designed to benefit the fund by ensuring that environmental, social and governance (ESG) risks and opportunities were more explicitly considered, as sustainability takes on greater importance in the global economy.

On 1 March 2023, Chris Hiorns stepped down as lead manager and was replaced by Gregory Herbert, with Michael Sheehan becoming co-manager. Herbert will lead the fund and will focus on the company shares held within the fund, while Sheehan will provide notable input into the bonds holdings for the fund. The fund will continue to have a focus on income generation and there are no planned changes to how ESG is incorporated into the offering.

We removed the fund from the Wealth Shortlist in March 2023.

Our view on the sector

Funds in this sector do what they say on the tin - they aim to pay a high income to investors. There's more than one way to achieve this though. Each fund uses a different approach and invests in different areas. Some focus on bonds. They tend to pay a fixed rate of income, but the amount varies from bond to bond. Government bonds are perceived to be lower risk and pay a lower income to reflect this. Corporate bonds offer higher yields because of the extra risk taken when lending to companies. Bonds can be less volatile than company shares, but offer less potential to grow your income and initial investment. Other funds focus on dividend-paying shares and offer more potential for long-term growth. There are also funds with the flexibility to invest in all kinds of investments. In addition to shares and bonds, they might also invest in currencies, property or commodities.

Performance Analysis

The fund has done an excellent job for investors since it launched in 1994, under Robin Hepworth's management until November 2020 and followed by Hiorns management until March 2023.

Going forward under Herbert and Sheehan's management, we expect the fund to continue to deliver a relatively high income compared to peers in the IA Mixed Investment 40-85% sector, with the potential for some capital growth, but there are no guarantees.

Investment Philosophy

Herbert typically invests in companies he thinks are of sound quality, with management who are committed to paying a dividend. He isn't always looking for companies that pay the highest dividend though.

Herbert breaks his company share investments down into three different buckets called Value, Capital Preservers and Dividend Growth.

The Value section will contain companies that are cheap compared to peers and will often be going through some sort of change which is expected to result in future share price rises.

The Capital Preservers section will contain companies that pay a high dividend but are unlikely to provide much capital growth.

The Dividend Growth section will contain companies who may pay a low dividend at the moment, but that have potential to grow the dividend over time. Often companies that achieve dividend growth also experience share prices rises too.

Process and Portfolio Construction

In November 2021, the fund's investment process changed to include positive and negative screens. This means the fund both excludes companies that the fund managers believe do harm, such as tobacco and fossil fuel producers, and identifies companies with strong responsible and sustainable corporate practices.

The share part of the fund can be expected to be around 75% typically (including listed infrastructure investments), with the remainder invested in bonds and cash. There has historically been a focus on UK companies due to the typically high dividends paid in the UK compared to other regions. However the fund also invests in America, Europe, and higher-risk Asian and emerging markets.

Some corporate and higher-risk high-yield bonds are held as it's still possible to find some income here. They also help diversify the fund.

Over time we expect the proportion invested in company shares and bonds to change depending on where the managers see the best opportunities.

Please note the fund's charges can be taken from capital. This increases the yield, but reduces the potential for capital growth.

question mark Manager Track Record Based on HL Quantitative Research

  • EdenTree Responsible & Sustnbl...
  • IA Mixed Investment 40-85% Shares
FROM: TO:


Source: Refinitiv Lipper

Fund Track Record

18/04/19 to 18/04/20 18/04/20 to 18/04/21 18/04/21 to 18/04/22 18/04/22 to 18/04/23 18/04/23 to 18/04/24
Annual return -14.29% 25.74% 6.43% -1.47% 2.00%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

EdenTree's (previously Ecclesiastical) Investment Management business was established in 1988. Originally offering only ethically screened funds, the range developed to include non-screened funds in 1994. The business is owned by the Allchurches Trust Charity which distributes a proportion of the company's profits for the benefit of the church and community.

Information about the fund

Fund manager biography

manager photo
Manager Name: Michael Sheehan
Manager start date: 1 January 2021
Manager located in: United Kingdom

Michael joined the EdenTree Fixed Income team in 2021 and is responsible for co-managing the Global Impact Bond Fund. Michael joined from Aberdeen Standard where he assisted in managing European Investment Grade Credit Funds. Prior to that, he has held the roles of Cash & FX Analyst and Consultant Database Manager at the firm having graduated in 2011 with a BA Economics from the University of Reading. Michael is a CFA Charterholder and also holds the Investment Management Certificate (IMC).

manager photo
Manager Name: Greg Herbert
Manager start date: 1 January 2022
Manager located in: United Kingdom

Greg Herbert is Head of UK Equities at EdenTree. He joined the firm in 2022 and is the lead Fund Manager on the EdenTree Responsible &Sustainable Managed Income Fund and the EdenTree Responsible & Sustainable UK Equity Fund. He started his career at State Street Global Advisors before moving to Jupiter Asset Management in 2005. Over his career, Greg has managed pan-European, North American and Global equity products. Greg holds an MSc in Investment Management from Bayes Business School at City University and a BA (Hons) in Modern Languages from Bristol University.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now