274. Investing for tomorrow: sustainability, healthcare, and emerging trends

The Rathbone Greenbank Global Sustainability fund marked its 5th anniversary in July. Manager David Harrison joins us to discuss how sustainable investing has changed over the past five years and predicts what is yet to come in the sector. We consider both the circular economy and artificial intelligence as emerging trends, but also delve into healthcare - a current opportunity within the fund. We also discuss the surprising resilience of the US and UK economies amidst market volatility and David also emphasises the importance of keeping a balanced approach in the fund.

Rathbone Greenbank Global Sustainability fund is a high conviction, multi-cap fund but will have a bias towards mid-caps. The fund has a negative screen, actively avoiding businesses involved in unethical or unsustainable practices, such as those involved in alcohol, animal welfare violations, armaments, human rights violations, oil & gas extraction, nuclear power, pornography, tobacco and gambling. Additionally, each holding will also have to have at least one positive environmental, social or governance attribute.

What’s covered in this episode: 

  • Why the US and UK economies appear resilient…
  • And whether that resilience can continue in today’s markets
  • The challenges facing companies today
  • Why the manager is keeping the fund balanced
  • The importance of regular management meetings
  • How the investment universe of the fund has grown over the past five years
  • Why the fund doesn’t include nuclear energy and defense companies
  • The quality of businesses within the sustainable sector
  • The types of healthcare companies in the fund
  • The balancing act of healthcare innovation and rising drug prices from a sustainability point of view
  • Two themes that could be the future of sustainability
  • The growth and significance of the circular economy
  • How artificial intelligence could penetrate the sustainable sector
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