Sustainable Leaders Trust


Fund overview

The Fund aims to provide capital growth by investing predominantly in UK companies, with some exposure to overseas equities. The Fund is relatively concentrated, with typically 40-50 holdings. The top ten holdings usually make up about 40% of total assets within the Fund. Risk is assessed at individual company level, supported by the investment team's extensive and detailed analysis. Investments deemed high risk are avoided because of the concentrated nature of the Fund.

The fund manager looks primarily for companies that he believes display better long-term prospects for growth than the broader stock market. Companies within the portfolio tend to be leaders in their field, with credible managements and strong business franchises. Quality is an important factor, and valuation is crucial.

Fund manager

Mike Fox is Head of Sustainable Investments at RLAM. Mike has managed RL Sustainable Leaders Trust since November 2003, Sustainable World since launch and Sustainable Diversified since February 2014. Prior to this, he was deputy fund manager on the Co-operative Pension Fund for two years, before which he worked as an investment analyst. Mike won Citywire's 2007 award for "UK Growth Fund Manager of the Year".

Investment approach

RLAM's sustainable team favours a distinctive approach, integrating the consideration of environmental, social and governance (ESG) issues, alongside financial analysis, throughout the investment process. Every holding has to meet key criteria and the team actively engage with the companies in which we invest to champion best practice on behalf of our clients, challenging companies on issues such as environmental policy and corporate governance standards.

The team’s exclusion policy is focused on avoiding companies believed to expose investors to unacceptable financial risk resulting from poor management of ESG issues.

This investment approach is characterised by a number of features:

  • Focus on long-term themes and trends such as infrastructure or changing demographics
  • Emphasis on active management across focused, high conviction ‘best ideas’ portfolios 
  • Valuation driven approach aimed at identifying mispriced opportunities
  • Low turnover with companies held within portfolios for typically 3 – 5 years
  • Careful analysis of company specific factors
  • Full integration of financial and ESG considerations throughout the investment process

Product Risk Warning

Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. For funds that use derivatives, their use may be beneficial, however, they also involve specific risks. Derivatives may alter the economic exposure of a fund over time, causing it to deviate from the performance of the broader market.

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