Most investment platforms levy an administration charge for holding your funds, which is based on a percentage of your investment or a flat fee. Some platforms also impose a fund dealing charge which you pay when you buy or sell shares in a fund.
By investing in the LF Blue Whale Growth Fund directly through Link Fund Solutions there are no platform fees or fund dealing charges to pay.
In our management of the LF Blue Whale Growth Fund, we strive for consistent, significant outperformance through detailed analysis of company and industry fundamentals.
Among the factors we consider in our research (including structural growth drivers, competitive position, management team strength, ability to withstand a recession etc.) are those related to environmental, social or governance (“ESG”) issues which have a material impact on the ability of a company to grow sustainably and profitably.
With a more socially and environmentally conscious customer base, it stands to reason that those companies that employ high standards of governance and act in a sustainable manner will stand to benefit. Investing in this way was previously a lot to do with investing with a clean conscience - it now also has the power to drive attractive returns.
Here we show you how we put this into practice and explain the factors we take into consideration for a selection of companies and sectors. In practice, multiple facets of ESG will affect companies. In the examples below we have selected a key facet.
We see stewardship of the environment as an important driver of companies’ sustainability. As the speed of innovation accelerates, manufacturing companies are seeking more efficient means of reducing the impact of product development and their environmental footprint.
We do not invest in industries where environmental concerns prevent a company from sustainably growing revenues or profitability.
We see financial inclusion as a keystone of sustainable development.
We do not invest in industries with poor (occasionally bordering on exploitative) labour relations.
We see strong governance as a key driver of companies’ long term growth through strong internal procedures and controls, culture and compensation.
We do not invest in companies with poor corporate governance which render them highly exposed to the risks of mismanagement and fraud even if they enjoy attractive growth and profitability.
While this is unlikely to be the case in countries with a strong corporate governance framework (like that in the UK), in regions where the framework is less robust (or at times non-existent), as in some emerging markets, investors are often saddled with additional risks of governmental interference and lack of transparency.