At the end of the month, financial markets rebounded strongly underpinned by the agreement to allow the eurozone’s rescue funds to recapitalise Spanish banks directly and to buy Italian sovereign bonds. A key element of the deal was a new system of European banking supervision via the European Central Bank, a first step toward a full banking union. The new EU deal also includes a EUR 120 billion ‘growth pact’ package and the start of the negotiations for close fiscal and economic co-operation.
The relief rally on the last day of the month allowed equity markets to end a disappointing second quarter on a positive note, with the Standard and Poor (S&P 500) Index in the US rising 2.35% and the FTSE World Index rising 3.05%, both in sterling terms. The Fund rose 1.19%.
During the month, Veolia Environnement (France, Water) disposed of its UK water business for GBP 1.2 billion to a financial venture lead by Morgan Stanley Infrastructure Partners. However, Veolia will keep 10% of the UK- regulated water business. The disposal is in line with the group strategy to deliver EUR 5bn in asset sales by 2013 and to reduce debt. The company remains a core holding for the Fund as it is a beneficiary of GDP growth and tightening environmental regulation.
|Launch Date||1 March 2010|
|Current Price (Retail - Acc)||112.22p|
|Fund Structure||OEIC/UCITS III|
|Annual Fees||1.5% (Retail) |
|Initial Fee||5.0% (Retail) |
|£1,000 / £100 (Retail) |
£1m / £50,000 (Institutional)
|Estimated Running Yield||3.30%|
|Ex-Dividend Dates||1 Feb & 1 Aug|
|Dividend Pay Dates||31 Mar & 30 Sept|
|Dealing/Pricing||Daily at 12.00pm|
|Sedol No.s, Retail (Acc/Inc), Institutional (Acc/Inc)||B5NB7L4 / B5MJDK0 |
B3K3HX1 / B5QHLR3
|Dealing Line||01202 855 856|
|Top 10 Holdings|
|Halma Plc Ord 10p||2.3|
|Novo-Nordisk A/S Bearer DKK1||2.2|
|Co-Operative 5.125% 2017||2.4|
|Etfs Physical Gold||2.4|
|Pennon Group Plc Ord 40.7p||2.7|
|American Water Works||2.6|
|Europe (ex UK)||18.9|
|Asia Pacific (ex Japan)||5.0|
|Mid Cap ($2- 10bn)||33.6|
|Large Cap (>$10bn)||27.7|
|Small Cap ($ 0.5-2bn)||8.3|
|Fixed Interest & Cash||26.5|
Supply of fossil fuels is depleting rapidly and it is set to be under pressure by 2030. In addition, many of the most extensive fossil fuel sources are located in countries of political instability adding security of supply to the problem of energy scarcity. Energy consumption is set to increase 50% by 2030, and many governments have already implemented legislation to reduce carbon emissions. In particularly, Europe is committed to reduce carbon emissions by 20% by 2020.
We will invest in companies providing solutions to the problems of using fossil fuels and energy scarcity & security, such as those involved in renewable energy generation, green transport, products & technologies for green building design & construction and energy efficiency.
Population is growing faster than ever before, with the majority of the growth coming from the developing world. To meet growing demand, food global supply is set to double by 2030. In addition, higher levels of prosperity will lead to changes on dietary choices and increased food consumption of protein rich products.
We will invest in companies providing solutions to the food supply/demand imbalance problem, such as those involved in grain production and harvesting, food testing, food processing measurement & control, and high-tech agriculture supplies.
Ageing, chronic and lifestyle diseases have put serious strain on the healthcare systems across the world. In addition climate change is increasingly responsible for the propagation of infectious diseases which are highly sensitive to changing temperatures and precipitation patterns, such as malaria.
We will invest in companies providing products and solutions to these problems, such as those involved in medical supply & devices, vaccines and products for infections diseases, minimal invasive surgery and medical analysis & testing.
Population growth and consumer consumption is driving materials usage and waste generation to grow to unsustainable limits. High income countries are generating 0.8 ton of waste per capita per year compared to 0.1 ton of waste per capita per year in the low income countries.
We will invest in companies providing solutions to the problems of resource scarcity, such as those involved in waste management, production and processing of environmentally friendly materials, waste-to-energy, coastal protection, productivity and efficiency gains and process control.
Water is becoming scarcer and more polluted from animal and human waste, industrial processes and the use of pesticides and other chemicals. Studies suggest that a 2°C rise in global temperatures could lead to a 20% reduction in water availability as well as crop yields and a more erratic water supply across many regions.
We will invest in companies providing solutions to the water scarcity problem, such as those involved in water supply and distribution, water analysis, monitoring and purification, water metering and efficient methods for crop irrigation.
|Cumulative performance* (%) to 30 June 2012||1 Month||1 Year||Since Launch*|
|Climate Assets Fund - R Accumulation||1.19||-3.19||12.22|
*Launch Date 1 Mar 2010
Past performance is not a guide to future performance and future returns are not guaranteed.