CCLA Better World Global Equity

The CCLA Better World Global Equity fund is a quality strategy offering a combination of capital growth and income. The fund is managed in line with CCLA’s approach to investing for a better world and targets businesses with stable and persistent growth, trading at attractive valuations.

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Our Opinion

This fund’s benchmark agnostic, responsible approach of investing in quality businesses, at attractive prices, has proven to be a very successful one since its launch in 2022, with the fund providing strong returns with lower volatility than its peers. This fund should be a strong consideration for anyone looking for a global fund with an ethical focus.

Fund Managers

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Charlotte is an equity portfolio manager with a strong background in managing global equities and multi-asset portfolios. She spent 15 years at Newton Investment Management, managing UK and international pension funds, before joining CCLA in 2016 from EFG, where she was a senior portfolio manager. Charlotte holds a degree in modern history from the University of St Andrews, an MA in history from the College of William & Mary, and an MBA from Cranfield. She is also a Chartered Financial Analyst (CFA) and holds the Investment Management Certificate.

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Joe is responsible for equity analysis and portfolio management at CCLA. He joined the company in 2011 after earning a BSc (Hons) in Economics from the University of York, initially working as an operations analyst on various projects. In April 2014, he transitioned to the Investment team, specializing in equities. Joe holds the Investment Management Certificate, is a Chartered Financial Analyst (CFA), and has earned the CFA Certificate in ESG Investing.

Charlotte is an equity portfolio manager with a strong background in managing global equities and multi-asset portfolios. She spent 15 years at Newton Investment Management, managing UK and international pension funds, before joining CCLA in 2016 from EFG, where she was a senior portfolio manager. Charlotte holds a degree in modern history from the University of St Andrews, an MA in history from the College of William & Mary, and an MBA from Cranfield. She is also a Chartered Financial Analyst (CFA) and holds the Investment Management Certificate.

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Joe is responsible for equity analysis and portfolio management at CCLA. He joined the company in 2011 after earning a BSc (Hons) in Economics from the University of York, initially working as an operations analyst on various projects. In April 2014, he transitioned to the Investment team, specializing in equities. Joe holds the Investment Management Certificate, is a Chartered Financial Analyst (CFA), and has earned the CFA Certificate in ESG Investing.

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Investment process

CCLA believe that over the long-term, share prices are driven by fundamentals: growth in earnings and cash flows. They aim to look beyond the short-term noise in the market – to buy and hold quality companies at attractive valuations, which can grow and compound their cash flows at high rates of return over the long-term (defined as any rolling period over five years).

Their philosophy is to find these companies by looking for four different characteristics. Firstly, they want companies that have enduring competitive advantages, as these companies will likely benefit from cost advantages and have brand power. They also want companies that have multiple sources of growth which can be resilient through the economic cycle; and companies that have a track record of using their capital efficiently. Finally, CCLA look for companies that have stringent ESG standards.

They start their screen with a universe of 8,000 names. CCLA believe that legislation, regulation and changing societal preferences will impact negatively on the most unsustainable business models. As a result, the team will screen companies that score poorly on financial and ESG standards which reduces investment universe to between 150-200 names. They then analyse each business by assessing their fundamentals and risk and return potential. They will buy a stock only when they have established a clear investment case and can justify the upside from the current share price with a ‘margin of safety’. This typically leaves them with a portfolio of 70-90 names.

Risk

The firm perceive risk as the potential to fail in meeting investors requirements. A variety of analytical and control approaches are used to manage risk, including due diligence, probabilities-based risk analysis and non-financial risk analysis. CCLA seeks a culture of challenge and collegial behaviour within the investment team to address both quantifiable and qualitative risks efficiently.
Risk analysis and controls are continuously applied to live portfolios, and they are modelled for potential transactions. Pre-trade compliance systems ensure adherence to constraints and controls, while daily post-trade checks are also conducted.

ESG

ESG - Explicit  

The Better World Global Equity Fund focuses on achieving real-world sustainability outcomes through active ownership. Their approach involves assessing companies based on their financial viability and their impact on the world.

To assess financial viability, they consider sector-specific sustainability issues defined by the Sustainability Accounting Standards Board (SASB) and use the CCLA Corporate Governance Rating to evaluate board structure, accounting practices, ownership, and capital stewardship. Additionally, they consider any sustainability controversies a company may be involved in. This assessment can influence their perception of a company's value.

Recognising that not all sustainability issues have an immediate financial impact, they also evaluate companies' real-world impact, particularly in the areas of labour standards, human rights, health and wellbeing, and climate change. Companies with unsustainable practices are excluded from their investment universe, and engagement plans are developed for others to facilitate positive change.

The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund nor of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating. All performance data, as well as fund size, OCF, AMC, annual income (historic), share price discount or premium, is sourced directly from FE Analytics, and will change periodically.