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Two investment trusts that don’t cost the Earth

2019 was the year sustainability went mainstream. In this article, we take a closer look at two investment trusts with very different approaches to investing responsibly.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Sustainability took centre stage in 2019. We saw extreme weather events across the globe, the rise of climate change protests, and environmental issues took the spotlight on the political agenda.

And it doesn’t look set to stop there. Already in 2020, devastating bushfires have wreaked havoc in Australia and BlackRock, the world's largest asset manager, has committed to reduce exposure to fossil fuels and better use its scale to combat climate change.

Most of us want to do our bit to live in a way that doesn’t damage the planet. However lots of us don’t know it's possible to invest our money to reflect these priorities.

In this article, we take a closer look at two investment trusts with very different approaches to investing responsibly. They're provided for your interest only and are not a recommendation to invest, or personal advice. It's important to invest based on your own objectives and attitude to risk. If you're not sure whether an investment is right for you, ask for advice. All investments fall as well as rise in value so you could get back less than you invest. If you choose to invest in either of these trusts, we think they should make up just a small part of a well-diversified portfolio.

Responsible stewardship in action

The Pacific Assets Trust has been managed by the Stewart Investors team since July 2010. Led by experienced investor David Gait, the team invest in companies across Asia and higher-risk emerging markets that they think will benefit from, and contribute to, the sustainable development of the region. They feel that identifying the environmental, social and governance issues faced by each business is an important way of managing risk.

Gait and his team apply the same approach across all of the investment portfolios they manage. When they buy a share in a company, they see themselves as business owners and take their rights and responsibilities seriously. This means they use their votes to steer companies in the right direction and engage with managers if they feel there are improvements to be made.

Since the managers took control in 2010, the trust's risen 145.3%*, compared with 118.7% for the broader Asian & emerging markets, although past performance isn't a guide to the future.

Annual percentage growth
Feb 15 -
Feb 16
Feb 16 -
Feb 17
Feb 17 -
Feb 18
Feb 18 -
Feb 19
Feb 19 -
Feb 20
Pacific Assets Trust -7.7% 29.0% 8.6% 11.0% -15.2%
FTSE World Asia Pacific ex Japan -9.8% 44.2% 10.1% -1.7% 2.5%

Past performance is not a guide to the future. Source: *Lipper IM to 29/02/2020

Find out more about Pacific Assets Trust inc. charges

Pacific Assets Trust Key Investor Information


Positively impacting the world around you

The Impax Environmental Markets Trust has been managed by Jon Forster and Bruce Jenkyn-Jones since launch in February 2002. They aim to invest in profitable, well established companies with proven business models and experienced management teams.

The managers believe global population growth and rising living standards are putting huge strain on basic resources and infrastructure. In their view, this combined with rising public concern over environmental issues could drive the performance of companies that help improve sustainability and solve environmental problems.

The trust is mainly focused on companies providing cleaner, more efficient products and services across the energy, water, waste, food, and agriculture industries.

The trust delivered a respectable return of 201.4%* over the past 10 years, beating the broader global stock market by 22.9%. Please remember that past performance is not a guide to the future.

As this trust is focused on specialist industries, expect periods of volatility. The managers' ability to invest in emerging markets, smaller companies and derivatives add risk, as does their use of gearing.

Annual percentage growth
Feb 15 -
Feb 16
Feb 16 -
Feb 17
Feb 17 -
Feb 18
Feb 18 -
Feb 19
Feb 19 -
Feb 20
Impax Environmental Markets 5.2% 41.6% 14.7% 10.1% 15.5%
FTSE World -1.5% 37.4% 7.3% 3.5% 9.0%

Past performance is not a guide to the future. Source: *Lipper IM to 29/02/2020

Find out more about Impax Environmental Markets inc. charges

Impax Environmental Markets Key Investor Information



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    Important notes

    This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

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