CIS Sustainable World Trust is a diversified international fund that aims to generate medium-to-long-term capital growth through worldwide investment in multiple asset classes, primarily equities with some exposure to fixed income and cash.

CIS Sustainable World Trust was launched in September 2009 and is managed by Mike Fox, Head of Equities at The Co-operative Asset Management. Mike has managed CIS Sustainable Leaders Trust since November 2003, and won Citywire’s award for “UK Growth Fund Manager of the Year” in 2007. Before his appointment as fund manager of CIS Sustainable Leaders Trust, Mike was deputy fund manager on the The Co-operative Pension Fund for two years. Prior to this, he worked as an investment analyst.

Strength through diversity

CIS Sustainable World Trust offers the same sustainable approach that has delivered strong, long-term returns for The CIS Sustainable Leaders Trust, but with an increased proportion of overseas holdings. This exposure to international companies combined with fixed income, provides an extra layer of diversification to the portfolio.

The portfolio is invested across the market capitalisation spectrum, in large, medium and small companies; however, overseas holdings tend to be concentrated amongst larger, blue-chip firms that meet The Co-operative Asset Management’s core investment criteria with regard to sustainability, corporate fundamentals and valuation. Overseas exposure tends to be focused on companies in Europe and North America, where disclosure tends to be more developed, making it easier for analysts to ascertain whether they fulfil The Co-operative Asset Management’s key investment criteria.

Fund facts

Manager name & location	Mike Fox, Manchester
Fund launch date	21/09/09
Risk rating	Balanced
Base currency	GBX
Distribution dates	May, November
IMA Sector	Balanced Managed
Annual Charge	1.50%
Initial Charge	5.00%
ISIN	GB00B3PXJV84

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A thematic approach

Supported by The Co-operative Asset Management’s experienced investment team, Mike Fox identifies core themes, and expands them on a global basis. This global approach means that he is advantageously positioned to pick up on themes and trends at an early stage in their development, and then to identify the individual companies that are poised to benefit from these themes in the long term.

Every holding within the fund has to satisfy The Co-operative Asset Management’s core criterion of sustainability with regard to environmental, social and governance (ESG) issues. As described earlier, the positive themes focused on include demographics, infrastructure and construction and power and climate change.

However, valuation is a critical factor, and Mike Fox will never include a holding unless it is well placed to contribute to the portfolio’s long-term performance.

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Communication is key

The Co-operative Asset Management’s fund managers are supported by a wealth of research and analysis, generated internally by The Co-operative Asset Management’s team of financial and ESG analysts, and externally from a variety of sources. Members of the investment team meet regularly to discuss company and sector research and portfolio construction. However, the team members’ close proximity facilitates a continuous, ad-hoc exchange of ideas and views, ensuring that communication is instant and continuous, ensuring that decisions can be made rapidly in a fast-changing and fluid environment.

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