Jupiter Green Investment Trust PLC (LON:JGC) focuses on companies that are providing innovative solutions to environmental challenges, and as such is benefiting from the high level of public interest in issues such as reducing waste from single-use plastics. Fund manager Charlie Thomas reports, for instance, that plastic recycling specialist Tomra Systems – JGC’s second-largest holding – has seen its share price rise over 45% in the past year as it wins new contracts around the world. JGC’s portfolio is diversified by geography and industry, and includes companies grouped under three broad themes of resource efficiency, infrastructure and demographics. The managers note that the environmental challenges – and hence the solutions to them – are increasingly complex and interlinked, which arguably plays to the strengths of a team that has been specialising in ‘green’ investment since the launch of the Jupiter Ecology Fund in 1988.
Investment strategy: Find environmental solutions
The environmental and sustainability investment team at Jupiter monitors a large and maturing global universe of c 1,200 stocks in three intersecting, thematic areas. JGC’s stock selection is largely bottom-up; the team meets c 300-400 companies each year, as well as undertaking detailed financial modelling, looking for companies with sustainable cash flows, strong management and compelling market positions. The managers note that a growing portion of the investment universe can be found in rapidly maturing solutions areas, providing an expanding pool of companies generating sustainable and growing income for shareholders.
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