How companies are selected
Every holding in the FP WHEB Sustainability Fund fits into one or more of its nine sustainability themes, with investment into companies that provide solutions to sustainability challenges.
WHEB adds value through expert understanding of the sustainability themes, new technologies and business models as well as through individual stock selection based on superior insights into companies in its portfolio.
Focusing on companies that provide solutions to critical environmental and social pressures confronting society creates an investment universe with superior growth prospects.
Alongside the thematic structure of the Fund, the integration of environmental, social and governance (ESG) is a second distinguishing feature of the investment strategy. High quality companies are more likely to capture growth opportunities, and WHEB believes that a company’s environmental, social and governance (ESG) profile is an important and under-appreciated indicator of quality. Its research combines ESG with traditional financial analysis at every stage of a methodical process revealing important information about a company’s growth potential and risk profile. WHEB also believes that engaging with companies to challenge them on a range of ESG issues, and analysing their responses, further adds to its knowledge and understanding of a company.
The final stage of WHEB's investment process is to determine whether a company is attractively valued, or what would represent an attractive entry point for a stock. WHEB uses a range of valuation techniques and metrics to judge what ‘attractively valued’ means. The Fund style is best described as quality, sustainable “growth at the right price” (GARP).