Latest News2021-05-12T17:12:12+01:00

Investing in the Transition to a Low Carbon World

The Covid crisis has slowed down many things, but the move to a low carbon world is not one of them.  In the face of another existential crisis in the making, governments have been legislating and companies adapting throughout the world.

This is creating hugely beneficial tailwinds for companies which are either aligned to or are enabling the energy transition to a low carbon, ‘clean’ energy world. In order to limit global temperature increases to the current target of 1.5 – 2 degrees, governments and policymakers have started to realise that we essentially need to drastically reduce our carbon dioxide emissions and revolutionise our current energy infrastructure. Thus, we have started to see a marked shift in governmental approach, with the increasingly widespread introduction of emissions targets, ‘green’ energy policies and financial commitments.

A change in attitude and actions which has also been seen at both a corporate level and in the lives of individuals, with companies and people seeking to adapt their energy usage and limit emissions outputs. However, as this is an evolution still very much in its infancy, it will also be the catalyst for extensive structural growth across the entire global energy infrastructure, as well as numerous investment opportunities.

The Positive Pennine portfolios have recently invested in a fund which strives to take advantage of these opportunities – the Schroder Global Energy Transition Fund. The investment philosophy applied to the fund is broad based in its nature and aims to capture the serious growth potential of this market, driven by the aforementioned shift in global policies and approach. Indeed, its five investment themes of renewable energy equipment, renewable energy generation, transmission and distribution, energy storage, hydrogen and other applications and electrical equipment and services, give the fund exposure to every stage of the energy transition.

This reflects the fact that many different types of company will be part of the energy transition – not just clean energy generators.  Some of these might be classified as ‘enabling infrastructure’, especially relating to electrical equipment and services. This theme starts with the manufacture of more efficient and effective equipment for the production of non-renewable energy, and ends with the companies providing the everyday, end user infrastructure, such as charging points of electric vehicles.

The managers also apply an exclusions screen, which enables the fund to avoid areas of the market and companies which do not align with the intentionality of the approach, with, as one would expect, particular focus being placed on excluding companies associated with fossil fuels or which are negatively contributing to the environment.

Moreover, the manager and his colleagues strive to invest in companies which clearly demonstrate responsible business practices. They will also actively engage with these companies to not only ensure that these standards are maintained, but also to encourage them to play an even bigger role in helping to enable the energy transition.

This is a highly exciting investment area which has long been talked about, but is only just starting to bear the fruits of its potential and the Schroder Global Energy Transition Fund aims to capture this growth.

For more information about how you can choose pensions and investments with a social and environmental conscience, have a look at our website www.positivepennine.co.uk.


Positive Pennine is a trading style of Pennine Wealth Solutions LLP, which is authorised and regulated by the Financial Conduct Authority and is only available through authorised Financial Advisers.

Investors should remember that the value of investments and income from them can go down as well as up. Investors may not recover what they invest. Past performance is no guarantee future results. Any mention of specific securities should not be interpreted as a solicitation to buy or sell specific securities.

February 17th, 2021|Latest News|

Good Investment Review – October 2020

The Good Investment Review published injunction with 3D Investing and the people at Good with Money is now available to download below.

Pennine Wealth Solutions are proud to be sponsors of this publication, as it highlights the research required to make informed decisions when constructing investment portfolios in the sustainable and impact investing market. It also gives advisers confidence when discussing these types of investment choices, that research has shown clients are clearly interested in.

Read our article on Page 67 all about ESG (Ethical, Social and Governance) Investing.

Good With Money is the UK’s first responsible finance website, whose mission is to show it is possible to achieve financial goals that have values and profit with principles. They champion the products and providers that make this possible.  Their website provides consumers with lots of information about sustainable financial products available, helping make more informed choices about how their money is being invested www.good-with-money.com


For more information about Positive Pennine please, contact Sean Fisher Business Development Manager
Investors should remember that the value of investments, and the income from them, can go down as well as up. Investors may not recover what they invest. Past performance is no guarantee of future results. Any mention of a specific security should not be interpreted as a solicitation to buy or sell a specific security.
January 13th, 2020|

So, what is Earth Overshoot Day?

Earth Overshoot Day marks the date when humanity’s demand for ecological resources and services in a given year exceeds what Earth can regenerate in that year (definition by https://www.overshootday.org/about/)

Earth Overshoot Day records started in 1970, with the first overshoot day being recorded on the 29th December 1970.  Over the years this date has moved as the demand on the Earth’s resources have increased. To help demonstrate this, here are a selection of recorded dates.

1975 – 30th November

1985 – 4th November

1995 – 4th October

2005 – 25th August

2015 – 5th August

2019 – 29th July

2020 – 22nd August

You will see from these dates, that the day the Earth’s resources are being used is slowly creeping up the calendar each year.  You will also notice that in 2020 the date moved back one month due to the impacts from the coronavirus pandemic. The Global ecological footprint reduced by 9.3% compared to the same period last year (https://www.overshootday.org/2020-calculation/).

Solutions

Earth Overshoot Day has identified five key areas which can help in moving the date back.

Planet – helping nature to thrive, Cities – how these are built and managed, Energy – how cities, businesses and homes are powered, Food – how food is produced, distributed and consumed, and finally Population.

All of the five key areas link with the United Nations Sustainable Development Goals. The Sustainable Development Goals were introduced by the UN, and adopted by all UN member states, in 2015. The collective aim of the goals is to end universal poverty, protect the planet and improve everyone’s lives, regardless of where they live.

Sustainable Investing

One of the way’s we can also help to move the Earth Overshoot Day back, is by investing in companies and projects that are making a difference to improve the world and will help achieve the UN Sustainable development Goals. The Positive Pennine Portfolios have been designed to do good and avoid harm by focusing on sustainable and responsible investing, in line the UN Sustainable Development Goals, while at the same time making money on investments.

For more information about how you can choose pensions and investments with a social and environmental conscience, have a look at our website www.positivepennine.co.uk.

If you would also like more information about Earth Overshoot Day, please visit their website https://www.overshootday.org/about/


Positive Pennine is a trading style of Pennine Wealth Solutions LLP, which is authorised and regulated by the Financial Conduct Authority and is only available through authorised Financial Advisers.

Investors should remember that the value of investments and income from them can go down as well as up. Investors may not recover what they invest. Past performance is no guarantee future results. Any mention of specific securities should not be interpreted as a solicitation to buy or sell specific securities.

August 20th, 2020|Latest News|

Sustainable investment funds prove their worth in the coronavirus epidemic

The financial case for investing in sustainable investment funds has been growing over the past 5 years, but there was always a question over how they would perform in a crisis.  Well we’ve certainly experienced that over the past few months and sustainable funds have passed the test with flying colours.

Morningstar recently released a report* that showed a consistent outperformance of sustainable funds.  Over the 3 months to 31 March 2020, 745 sustainable funds in 7 categories were compared with their conventional counterparts, with 6 out of the 7 outperforming by 0.11% – 1.83%.

Over the 10 year period to 31 December 2019, 58% of sustainable funds outperformed their conventional counterparts.  Sustainable funds have also proven to be more durable – 72% of them survived the 10 year period, whilst only 46% of conventional funds survived the same period.

Morningstar’s definition of sustainable is quite broad, but nevertheless, it demonstrates the financial case for sustainable investing. Morningstar identifies the reasons for this outperformance as being underweights in oil and gas (which were hit by the rapid fall in demand) and the overweight in healthcare and technology; coupled with conservative financial management and competitive advantages of sustainably managed companies.  This makes them better equipped to withstand periods of uncertainty.

We agree. The Coronavirus crisis has accelerated trends that were happening anyway.  Sustainable funds are benefitting from long-term tailwinds, such as increasing numbers of older people driving the demand for healthcare, whilst also benefitting from the avoidance of long-term headwinds, such as increasing environmental taxes.  These trends are likely to be reinforced by the coronavirus epidemic.  Instead of being seen as a cost, sustainable investing is now viewed as an opportunity.

If you are interested in sustainable investment, please take at look at our Positive Pennine range of portfolios or contact our Business Development Manager Sean Fisher on 0800 161 5052.

* How Does European Sustainable Funds’ Performance Measure Up? June 2020


Positive Pennine is a trading style of Pennine Wealth Solutions LLP, which is authorised and regulated by the Financial Conduct Authority and is only available through authorised Financial Advisers.

Investors should remember that the value of investments, and income from them, can go down as well as up. Investors may not recover what they invest. Past performance is no guarantee future results. Any mention of specific securities should not be interpreted as a solicitation to buy or sell specific securities.

 

July 21st, 2020|Latest News|

Greenwashing

Greenwashing: when sustainable investing goes rogue

Corporate Social Responsibility (CSR) is initiated by companies to become socially accountable through their economic, social, and environmental impact. CSR has become a focus for marketeers who know that in terms of promoting a company, social responsibility offers high currency value. One unwelcome phenomenon to have evolved from the desire to be seen to be socially responsible, is “greenwashing”.

What is greenwashing?

The term “greenwashing” was coined as a nod to the more established and better-known term of whitewashing, where negative information is glossed over through a biased presentation of facts. 

Greenwashing is the deliberate promotion of misinformation about a company’s environmental impact to win favour with potential customers. Exaggerated claims are made that the company has higher environmentally friendly credentials than it really has. This could, for example, be related to the recycled properties of products, energy-saving benefits or use of transport.

How do companies go about greenwashing?

Companies engage in greenwashing by plugging misleading environmental claims in the likes of press releases, mission statements, websites, advertising and product descriptions. These are either found to be untrue, or true but happening alongside a host of non-environmental policies that prevent the company from claiming it is an ethical organisation focused on sustainability.

A high profile case of greenwashing happened in the 1980s when oil company Chevron claimed it was an environmentally-friendly organisation, but in reality it was violating the Clean Air and Clean Water acts, while depositing oil into wildlife shelters.

Some companies can fall into greenwashing by accident as they don’t have the expertise to know what is truly environmentally beneficial, and what is not. Companies should research their claims thoroughly to avoid this happening.

Greenwashing and its effect on investments

There is a growing concern in the financial sector about the escalation of companies wanting to benefit from the move toward sustainable investment. An increasing number of firms are marketing products and investments in a way that makes them seem more sustainable and ethical than they really are.

The Financial Conduct Authority (FCA) now challenges firms that are greenwashing financial products to protect consumers from being misled over the sustainability of their investments. Funds must clarify to investors if and how they pursue environmental and social objectives, and to do so in a way that is not misleading. 

Any difficulty in validating claims about products on offer will put those products at risk of greenwashing, which could undermine confidence in the green sector. The FCA’s concern is that this could lead to unsatisfied demand and reduced investment in sustainable investments.

Positive Pennine lead the way in sustainable investing

All funds offered by Positive Pennine are from sustainable investment portfolios. Each fund is subjected to a rigorous assessment that confirms their suitability for sustainable investing, in line with the United Nations’ 17 Sustainable Development Goals.

Positive Pennine have a community of trained and approved Financial Advisers across the North West, who understand sustainable investing. If you would like to be put in touch with an approved adviser to feel assured about investing in sustainable products, visit our website: www.positivepennine.co.uk.


Positive Pennine is a trading style of Pennine Wealth Solutions LLP, which is authorised and regulated by the Financial Conduct Authority and is only available through authorised Financial Advisers.

Investors should remember that the value of investments, and income from them, can go down as well as up. Investors may not recover what they invest. Past performance is no guarantee future results. Any mention of specific securities should not be interpreted as a solicitation to buy or sell specific securities.

 

June 22nd, 2020|Latest News|

Positive Investing Pays!

Positive Investing Pays!

Environmental and Social Governance (ESG) has become an integral part of the investment industry, and is now part of mainstream investment management.  There is increasing recognition of the risks of not taking due account of environmental and social factors. Avoiding these risks can materially enhance long-term returns. 

Federated Hermes (manager of the Hermes Impact Opportunities Fund) has long been at the forefront of ESG and has recently published research that demonstrates the financial value of integrating ESG into fund management.  Federated Hermes has identified the following:

ESG

Source: Hermes Investment Management, October 2018

Equities

Companies with strong corporate governance typically outperform poorly governed peers by an average of 0.24% each month.  Companies with good or improving social factors outperform by 0.15% each month on average1.

Fixed Income

There is a correlation between ESG risk and the amount that companies have to pay to borrow money: those with the lowest ESG scores tend to have to pay more, and those with the best scores pay less2.

Engagement

Success in influencing companies on ESG drive outperformance. Companies undergoing positive change can generate an additional 7.1% in additional annualised returns3.

Positive Investing Pays

This is compelling evidence that the adoption of high standards of environmental and social standards is not just good for society, but it’s good for your financial well-being too.

The Positive Pennine Portfolios have ESG as a core principle when looking at constructing the portfolios. For a fund to be included within the Positive Pennine framework, it has to exhibit clear evidence of an ESG strategy and have an internal resource to implement this strategy.

If you are a Financial Adviser and would like more information about the range of Positive Pennine portfolios, please contact Sean Fisher on 07583 241668 or e-mail 

Investors should remember that the value of investments, and the income from them, can go down as well as up. Investors may not recover what they invest. Past performance is no guarantee of future results. Any mention of specific security should not be interpreted as a solicitation to buy or sell specific security.


Positive Pennine is a trading style of Pennine Wealth Solutions LLP, which is authorised and regulated by the Financial Conduct Authority and is only available through authorised Financial Advisers

 1Source: “ESG investing: a social uprising,” by Hermes Global Equities. Published by the International business of Federated Hermes in Q4 2018.

 2 Sources: “Pricing ESG risk in credit markets: reinforcing our conviction,” by Mitch Reznick, CFA and Dr Michael Viehs. Published by the International business of Federated Hermes in Q4 2018. “Pricing ESG risk in sovereign credit,” by Mitch Reznick et al. Published by the International business of Federated Hermes and Beyond Ratings in Q3 2019.

 3Source:.”Active Ownership,” by Elroy Dimsona, Oğuzhan Karakaşb, and Xi Lic, published in 2012. This study analysed an extensive database of corporate social responsibility engagements with US public companies over 1999–2009 addressing environmental, social, and governance concerns. Engagements are followed by a one-year abnormal return that averages +1.8%, comprising +4.4% for successful and zero for unsuccessful engagements. Past performance is not a reliable indicator of future results.

April 23rd, 2020|Latest from John Fleetwood|

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