The trust is a rollover option for investors in the Jupiter global green investment trust and is also open to new investors. It aims for growth by investing globally in businesses that will benefit from six green investment themes – water management, clean energy, green transport, waste management, sustaiaable living and environmental services.
Together, these themes may cover companies proving wind and solar power, public transport systems, firms involved in the treatment of sewage, organic foods, complementary medicines and healthcare.
The trust will be managed by Charlie Thomas, who joined Jupiters SRI team in 2000. Since December 2003 he has been the lead fund manager of the Jupiter Global Green investment trust and the Jupiter Ecology fund. Prior to this he spent three years at BP, firstly as an environmental policy advisor, then as a commercial analyst.
Thomas will work with Jupiters socially responsible investment team to select stocks in all regions except the US and Canada as Boston-based Winslow Management Company led by Jackson Robinson and Matthew Patsy will manage this element. Winslow was founded in 1983 and has around 370m assets under management.
The majority of stocks in the portfolio across all regions will be small and mid-caps selected on a bottom-up basis. Companies will be screened to ensure they fall within at least one of the green investment themes. The risk and reward profile of each company will be assessed and a value style will be applied to ensure the companies are suitably priced.
Companies will be favoured if they have above average growth and will benefit from new technology, government policy and social trends. Companies which have a strong position in their market and a good manaegemnt team are also desirable.
According to Jupiter, the outlook for investment in companies providing environmental solutions is promising as environmental issues are more prominent. More attention is being given to issues such as climate change, as highlighted by the Kyoto Treaty and the fact that many countries have polices to promote renewable energy. This, combined with growing demand for energy on a global basis, appears encouraging for companies involved in such areas as wind power, solar power and emission reduction.
However, any fluctuation in the price of gas and oil may have a negative impact on some companies as would the rising cost of the technologies used to provide environmental solutions.