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EDENTREE RESPONSIBLE AND SUSTAINABLE EUROPEAN EQUITY B

EDENTREE RESPONSIBLE AND SUSTAINABLE EUROPEAN EQUITY B - Overview

Overview of EDENTREE RESPONSIBLE AND SUSTAINABLE EUROPEAN EQUITY B

The fund’s aim is to achieve long-term capital growth with a reasonable level of income, through a diversified portfolio of continental European companies which make a positive contribution to society and/ or the environment. Manager Chris Hiorns targets companies meeting Edentree’s nine pillars of responsible investing, and also screens out companies considered harmful. A separate SRI (Socially Responsible Investment) team and an independent panel review the portfolio to ensure it adheres to these criteria. Hiorns has a value style, looking to invest cheaply into businesses with identifiable and sustainable competitive advantages.

  • Standard Initial Charge 2.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector Europe Excluding UK
Structure OEIC
Launched September, 1999
Size £98m
Yield 1.3%
Charging basis Income
Dividends paid 30 Apr, 31 Aug

Charges

Standard initial charge 2.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.81%

Risks

Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

EdenTree is a boutique that specialises in socially responsible investing and has won a number of awards, highlighting its expertise in this area of the market. "Profits with Principles" is the firm's key mantra. Manager Chris Hiorns has been in charge of the fund for more than a decade and has delivered attractive returns over that time, especially as his value style has been out of favour for much of his tenure and particularly so in recent years. Hiorns favours higher quality companies which has led to a more defensive performance profile, with the fund often providing a degree of protection from falling markets but lagging when markets rise.

Portfolio

Allocation Proportion(%)
Equity 99
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 1
Allocation Proportion(%)
UK 0
Europe 100
North America 0
Japan 0
Pacific 0
Emerging Markets 0
Allocation Proportion(%)
Large Caps 64
Mid Caps 25
Small Caps 11

View all performance data for this fund

Investment process

EdenTree has a four-pillared approach to responsible investing - research, screening, engagement and voting. The separate SRI team uses both positive and negative screens, including the use of Sustainal itics for company data. Negative “Avoiding Harm” - using a 10% of turnover threshold the following areas are excluded: alcohol, gambling, pornography, tobacco, weapons, intensive farming, animal testing for cosmetic or household products, oppressive regimes. Positive - looking for good corporate citizens and the manager uses “Nine Pillars” of Responsible Investing - Business Ethics (tax, product quality, company conduct), Community (apprenticeships, training, relationships and welfare of where they operate), Corporate Governance, Labour (diversity, equal opportunities, health & safety), Environmental management (recycling, energy efficiency, pollution control, sustainable products), Human Rights (+ land rights), Education (human development), Health (access to medicine, wellbeing), Urban Regeneration (affordable housing, green building). Portfolio construction and financial analysis is the responsibility of the fund manager. Hiorns targets businesses that are out of favour but intrinsically sound, and where a change in circumstance or economic conditions will bring about a recovery both in company fundamentals and improved investor sentiment, thus leading to superior returns.

Live feed

Bid price(inc) 315.70p
Accum units 315.70p
Fund commentary 02/01/20
Fund data updated on 17/09/21

Asset allocation

Allocation Proportion(%)
Equity 99
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 1

Equity Geographic

Allocation Proportion(%)
UK 0
Europe 100
North America 0
Japan 0
Pacific 0
Emerging Markets 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 64
Mid Caps 25
Small Caps 11

Top 10 holdings

As at: 31/07/2020
3.2836%Saint-Gobain (Compagnie De)
3.0131%Draegerwerk Kgaa Non-Vtg Prf Npv
2.7313%Enel Spa
2.7254%Prysmian Spa
2.7167%Schneider Electric Se
2.7002%Smurfit Kappa Group Plc
2.6703%Envea
2.6605%Sanofi
2.6051%Koninklijke Philips Nv
2.5957%Roche Hldg Ag
Source: Trustnet

Sector breakdown

Industrials 29%
Financials 18%
Health Care 16%
Telecommunications 8%
Consumer Services 7%
Consumer Goods 6%
Utilities 6%
Basic Materials 5%
Others 5%
Money Market 0%

Portfolio details

50-70 stock portfolio.

Constraints

Max 5% per stock. Sustainable investment policies excluded approx. 1/3 of universe.
There are some limits placed on the portfolio but these could result in significant divergences from the benchmark from time to time.

Average monthly relative returns Bestinvest MRI
16/17 17/18 18/19 19/20 20/21   3 years 5 years Career 3 years 5 years Career
0.23% -0.28% -0.52% -0.15% 0.27%   -0.13% -0.09% 0.05% 40.10% 45.20% 89.30%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Chris Hiorns

Manager. Hiorns has worked at EdenTree since 1996 having gained an MSc in Economics from University College London. He started as a graduate trainee and worked as an Investment Analyst before being appointed as Fund Manager of the Amity European Fund in 2007. He has been a CFA Charterholder since 2004.

Track record

Chris Hiorns has 13.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.05%. During the worst period of relative performance (from June 2017 - March 2020) there was a decline of 14% relative to the index. The worst absolute loss has been 30%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 89%.

Periods of worst performance
Absolute -30% (May 2008 - February 2009)
Relative -14% (June 2017 - March 2020)

Other funds managed

Sector record since April 2008 (13 yrs)




About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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