First State to launch Worldwide Sustainability fund for Gait

First State is planning to launch a Worldwide Sustainability fund for David Gait later this year, according to reports in Investment Week.

The sister title of InvestmentEurope said the launch will enable investors to once again access the group’s sustainable investment process. In January, First State soft-closed its £219m Asia Pacific Sustainability and £172m Global Emerging Markets Sustainability funds, both managed by Gait.

The First State Worldwide Sustainability fund will hold high quality companies with shareholder friendly management. It will invest primarily in the US, Europe and Japan, although the manager will also be able to look for opportunities in emerging markets. No single country except the US will exceed 30% of the portfolio.

Gait (pictured) will employ a fundamental bottom-up approach, targeting companies which offer sustainable and predictable growth. As with the other two funds in the range, Gait will focus on company cashflow and balance sheet strength.

The portfolio will hold 40-60 stocks, and will use the MSCI All Country World index as its benchmark. Gait will target outperformance of 3% per annum over rolling five-year periods.

First State is running the fund as a paper portfolio and will bring it to the market later this year. In the model portfolio, Unilever, Handelsbanken and GlaxoSmithKline are the three largest positions.


This article was first published on Investment Week

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