Trustnet asked fund pickers what to hold alongside one of the most popular sustainable funds, Royal London Sustainable World Trust.
13 October 2021 By Eve Maddock-Jones, Reporter, Trustnet
Royal London Sustainable World Trust is one of the most popular options for sustainable investing, recent research by Trustnet found, but what should investors be holding alongside it?
Last week, Trustnet looked at which sustainable funds had been the most popular with DIY investors over the past five years and Royal London Sustainable World Trust was the only name to appear on multiple lists.
The fund has been run by FE fundinfo Alpha Manager Mike Fox since its launch in 2009, with co-managers George Crowdy and Sebastien Beguelin joining earlier this year.
The portfolio is split between equities and bonds, although it is skewed towards the former. All assets undergo Royal London’s sustainability testing and must have a net positive benefit for society.
The Royal London Sustainable World Trust is an example of genuine sustainable investment, according to Square Mile Investment Consulting and Research Limited…
Below Trustnet asked fund pickers which portfolios they would recommend holding alongside it.
Impax Environmental Markets
First is another sustainable pick to fill out the areas Royal London Sustainable World Trust doesn’t cover, Impax Environmental Markets…
FSSA Asia Focus
The next pick takes a step away from sustainability and focuses on adding regional diversification…
Alliance Trust
Last up is a closed-ended option, Alliance Trust, picked by James Carthew, head of investment companies at QuotedData.
Alliance Trust is an active multi-manager portfolio. The investment managers, Willis Towers Watson, sub-contract the management of the trust to 10 stock-pickers with different styles, each of which runs a 20-stock portfolio. This makes it more broadly diversified than the Royal London fund, an ideal option to work alongside the latter, Carthew explained.
Read more here