CIS Sustainable Diversified Trust aims to provide capital growth from a diverse range of asset classes, for example, equities, fixed income, property-related investments and cash, primarily in the UK.

The fund was launched in July 2009 and is managed by Linda Desforges. Having joined The Co-operative in 1989 as a research analyst, Linda has managed portfolios since 1993. She now heads up The Co-operative Asset Management’s External Funds and is a key member of the asset allocation team. Linda assumed responsibility for The Co-operative Asset Management’s multi-manager funds at the time of their launch in April 2006. Linda’s broad range of experience makes her particularly well equipped to manage a fund that is diversified across a wide range of asset classes and geographies.

A bottom-up approach to security selection

The portfolio is constructed on the basis of bottom-up stock selection, which is guided by the long-term investment themes and economic trends that drive the intrinsic value of the underlying investments. Analysis from the in-house research team helps to uncover key themes; for example, the global power shortage and secular growth in emerging markets.

A balance between risk and return

When determining the asset allocation of the fund, Linda will evaluate the prospects for both risk and return. When risk takes centre stage, she focuses on a relatively defensive strategy with an emphasis on government bonds, alternative investments and cash. In a period of more stable economic growth, the portfolio is likely to be weighted towards corporate bonds, equities and property. At all times, she aims to maximise returns whilst minimising volatility. Particular attention is paid to corporate performance levels; signs that a company’s profitability is embarking on a return to the mean following a period of under or over earning will prompt fund manager action.

Linda believes that the balance between asset allocation and stock selection maximises the potential for superior returns in the long term.

Fund facts

Fund Manager	Linda Desforges
Fund launch date	24/07/09
Risk rating	Cautious
Base currency	GBX
Distribution dates	March, June, September, December
IMA Sector	Cautious Managed
Annual Charge	1.50%
Initial Charge	5.00%
ISIN	GB00B3PXJV84

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An experienced lead manager supported by a strong team

Linda is responsible for asset allocation and the ongoing monitoring of the portfolio and mix of assets and her strong understanding of the dynamics of the different asset classes is key. She also takes ultimate ownership of the securities that are held in the portfolio, working with Mike Fox, Head of UK Equities, on equity selection and Richard Nelson, a senior fund manager in our Fixed Income team to select securities from the corporate and sovereign bond space. The fund also benefits from input from over 50 investment professionals at The Co-operative Asset Management, including fund managers, equity, fixed-income and ESG research analysts and risk analysts. Linda is closely involved in the stock selection process and she generates ideas from her own research that she passes to the Research Team for further analysis. The portfolio will typically contain around 80 to 90 securities, and holdings are likely to be retained for a relatively long period of at least three years.

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A sustainable approach enhances the whole investment process

The core theme of sustainability runs throughout the investment process. Linda believes that The Co-operative Asset Management’s integrated analysis on environmental, social and governance (ESG) issues provides a valuable additional perspective that enhances the overall process of research and stock selection.

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