The newest investment solution by Ninety One uses an assessment of externalities beyond carbon and an appraisal of corporate culture to identify sustainability leaders.
Ninety One has announced the launch of the Global Sustainable Equity Strategy. The strategy is managed by Stephanie Niven, and is a concentrated, active, long-term global equity solution focused on sustainability leaders. It will complement Ninety One’s suite of sustainable capabilities, inclusive of Global Environment, UK Sustainable Equity and Global Multi Asset Sustainable Growth.
The Global Sustainable Equity strategy is investing for a world transitioning towards a more sustainable future where externalities will be increasingly priced and valued. This includes not just the carbon externality, where there has been significant momentum over the last eighteen months, but broader externalities that impact a company’s employees, wider society and the natural world. Stephanie Niven, Portfolio Manager, Global Sustainable Equity, Ninety One: “We believe the world’s measure of success is shifting from the zero-sum game – where shareholder value is maximised at the expense of other stakeholders – into a world where considering multiple stakeholders in business decisions creates greater value for all”.
Identifying sustainability leaders requires new tools beyond traditional financial analysis. As well as assessing company externalities, the team incorporates an appraisal of corporate culture with a view to finding those companies that think long-term about their businesses when it comes to externalities and have what it takes to continue to be sustainability leaders in the future. Combining externalities and corporate culture assessments with a disciplined investment approach creates the opportunity to select companies with enduring competitive advantages at attractive market valuations.
Mimi Ferrini, Co-Chief Investment Officer, Ninety One: “The broadening of our global sustainable equity offering is another milestone in Ninety One’s drive to put sustainability at the core of our business. However, providing sustainability with substance is key, and it is imperative that we develop solutions to address the challenges investors are facing as the world transitions to a more sustainable growth model”.