Sustainability & Positive Screening: The Fund invests in a diversified global portfolio of companies with activities identified by WHEB as providing solutions to the challenges of sustainability via nine sustainable investment themes – five of these are environmental (cleaner energy, environmental services, resource efficiency, sustainable transport and water management) and four are social (education, health, safety and well-being).

Impact Investing:  WHEB produces an Annual Impact Report which measures, calculates and reports on the extent of positive social and environmental impact from investing in the strategy. We have also developed an impact microsite and calculator (https://impact.pengana.com) where investors can quantify the impact of their own investment in the fund.

ESG Integration: WHEB’s approach to ESG issues in their investment process is to consider these issues at all stages of analysis and as an integral part of an assessment of the quality of the business overall.

Thresholds: We only interested in companies that have genuine exposure to our sustainability themes and set a threshold of having at least 50% of their revenues or profits coming from these areas. Companies that do not meet this threshold, or that have exposure (greater than 0%-5% of revenues, as the case may be) to activities considered to have significant negative environmental or social impact are excluded and do not qualify for investment. In practice most holdings in the fund are 100% exposed to the themes, and the weighted average across the fund is over 80% exposure. In addition, when considering whether a particular technology fits within our themes, we undertake a broad holistic assessment to determine the extent to which the technology adequately mitigates wider environmental and social impacts. We exclude companies with a market capitalisation of less than US$2bn from our universe, along with companies that are not listed on a primary stock exchange. This discipline has a number of advantages, including better liquidity characteristics for the portfolio, and an avoidance of immature business models and ‘concept stocks’.