Hanson Sustainable Income Fund
The Fund
The investment objective of the Hanson Sustainable Income Fund is to seek to invest in dividend paying companies which have embraced sustainability in the areas of Environment, Society & Governance (ESG). In addition the fund aims to achieve growth in capital and income over the medium term across the economic cycle. We believe that by embracing the sustainable agenda companies will not only build more resilient business models, but they will make a vital contribution in the transition to a green economy.
The Fund’s investment policy is to principally invest in large high quality dividend paying companies listed in the UK and elsewhere. We seek opportunities which offer the potential for capital and income growth in companies which have established brands and high quality, but above all resilient business models which can withstand bad times.
In defining the fund’s commitment to sustainable ESG investing our commitment is to support companies that have embraced this agenda as a whole and not just those which are seeking to cut their carbon emissions, however noble and essential that aim. Arlington Capital has developed a Sustainable ESG rating system that all holdings are subject to and scored on an annual basis. The sustainability of a business concerns the degree to which they not only reduce negative impacts on the natural environment through their operations, but also invest in business practices that promote policies to make wide-reaching progress toward sustainable development.
Looking at this at the fund level, we may from time to time selectively invest in resource and pharmaceutical companies where each firm has made a clear commitment to and investment in Sustainability. For example the operations of oil companies would be examined for their impact on the surrounding environment. Similarly the fund would be unlikely to in a coal miner, but could invest in a power generation company that generates power using clean energy and fossil fuels. However we would need to be comfortable that the clean energy side was growing rapidly and the company had an achievable plan to reduce its fossil fuels operations.
In summary the fund will support those businesses which are making a net positive contribution to sustainability and those which are undergoing rapid change. These factors are more important than baring certain sectors which today are carbon intensive, but could be the winners of tomorrow. We also want to encourage our holdings to embrace the Sustainable agenda, because we firmly believe it makes them financially more secure. The fund will not invest in companies where more than 10% of their revenues are earned from: alcohol, armaments, gaming, pornography and tobacco.
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Hanson Sustainable Income Fund is a subfund of Ledbury SICAV which is authorised and regulated by the Malta Financial Services Authority.
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