Guinness Global Environment Fund

Structural growth

The global population is forecast to grow by 20% by 2050. Global gross domestic product, meanwhile, is expected to more than double, resulting in an increase in GDP per capita of 70%. Greater wealth is strongly associated with higher consumption, meaning that demand for scarce resources such as energy, food, water and fertile land are expected to outgrow GDP. Source: PWC - The Long View How will the global economic order change  by 2050? 

Supply-demand imbalance

Many environmental resources are inherently limited in supply. At the same time, urbanisation and the energy transition are changing the way we use them. This creates a structural opportunity for companies offering environmental solutions in the five key areas of food, water, climate, waste, and land. 

An established investment theme

We identify over 500 globally listed companies exposed to the environment theme. Not only does this group suggest ample scope to select only the best opportunities, but it has already displayed attractive growth characteristics compared to the wider universe of listed companies. 

Durable growth theme

Environment represents a major secular growth theme with a broad opportunity set of mature companies to choose from. 

Expertise in thematic investing

Co-managers Jordan Patel and Jamie Melrose have over 20 years’ combined experience in environmental equities, building on a track record of thematic investing at Guinness Global Investors dating to 2003. 

Value discipline 

We apply bottom-up valuation analysis to avoid over-paying for the growth potential we have identified. 

High conviction

With 30 broadly equally weighted positions, our portfolio applies conviction to every stock while balancing concentration and stock-specific risk. 

Quality approach

Our disciplined quality approach based on return on capital leads us towards stocks creating real value and aids repeatability. 

Differentiation

Our focus on quality gives us a different portfolio to peers and helps us avoid exposure to businesses which cannot capitalise on the opportunity. 

Aligning capital with positive outcomes

By investing in companies providing environmental solutions, the fund offers a vehicle for investors to align their capital with better use of the world’s resources.