Virgin Climate Change Fund - The fund that puts performance first, but doesn't forget the planet

Virgin Climate Change Fund - The fund that puts performance first, but doesn't forget the planet

Fund information

A compelling investment opportunity
We believe our approach will maximise potential returns and offer your clients the opportunity to capitalise on changing industry conditions while feeling ‘good’ about their investment.

Fund objective
The fund aims to provide market-leading returns by investing in select companies who are driving outstanding profit growth and are environmental leaders in their industry. It’s different to other environmental-focussed funds.

Our investment strategy
We take a three-layered approach in deciding which companies to invest in.

Your money is invested in the fund in the following way

75% - 100% in lighter footprint companies

We apply what we call the GLG ‘green filter’ to those companies already selected for GLG’s flagship European Equity Fund. This screens out the companies with a heavier environmental footprint.

Lighter than average companies

75%- 100% lighter footprint companies Pie Chart Slice
 

Up to 15% in solution adopters

These are companies taking the lead in their industries, actively adopting environmental best practice and seeking to minimise their environmental footprint.
 
 

Ideas from fund managers and analysts

Up to 15% in solotion adopters
 

Up to 10% in solution providers

These are companies developing, manufacturing and providing innovative products and solutions to environmental problems. Investing in these stocks can be riskier which is why they make up the smallest proportion of the fund.

Ideas from fund managers and analysts

Up to 10% in solution providers
 

Fund information

The above case studies are illustrative and there is no guarantee they will be held in the Virgin Climate Change Fund at any given time.


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Lighter footprint companies - BG Group

Formerly British Gas, BG Group operate in the lucrative power sector, where gas is the lowest carbon fossil fuel. Gas converts to energy more efficiently than other fossil fuels and has made a significant contribution to UK climate change targets. BG’s operations are best in class in terms of quality and investment returns and with ambitious plans and projects in the pipeline, we are looking for double digit growth over the next few years.

 
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Solution adopters - ABB

ABB Group are among the world’s foremost engineering companies. By working with electrical companies worldwide, they are helping to reduce electricity loss and supplier efficiency. As prices for electricity increase and supplier efficiency becomes increasingly important, ABB Group are perfectly positioned to deliver real profit in this market.

 
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Solution providers - Ceres Power

Ceres Power operates in the largest commercial market for fuel cell technology - Combined Heat and Power boilers for homes. The environmental benefits include low-to-zero emissions.

With over 30 million boilers sold worldwide each year, Ceres Power is in a market potentially worth £50 billion a year. They have partnerships with Calor Gas, EDF Energy Networks and British Gas. The future looks bright as the demand for CHP boilers increases. British Gas estimates that by 2020, 30% of all boiler replacements could be CHP.

 

Fund information

How the green filter works

The green filter is used to review the environmental footprint of each of the high performing companies considered to be part of the fund. These lighter footprint stocks make up 75-100% of the Fund.

The fund management team work closely with Trucost, a leading world authority who assess over 700 factors to work out a company’s ‘footprint’.

This is then shown as a percentage of a company’s value, as in the example below:

Footprint example


If we compare all companies in an industry sector using this kind of analysis, it allows us to rank them in order from low footprint to high footprint. For a company to be admitted to the Climate Change Fund, it has to have a footprint in the top half of the list for it's industry.

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