Your questions answered Vol 2 - IM Private Clients
Discussion
rigga said:
markiii said:
Something's caused a nice jump in IM funds this last few days
Mine are back in the black for the first time since investing a few months back, my vanguard ones are streets ahead, hoping IM continue to flourish.They are just about nudging into the black for me as well since first putting money in a good few months ago.
Hi all
In what has been a very busy time for someone supposed to be relaxing and getting back to full fighting strength I have been very busy of late with PHS.
In a nutshell we have decided after much researsh and due diligence to split the tracker element and direct stock holding element into two separate portfolios.
Everyone is getting an email about this now and I have pasted the contents below for all to read:
Launch of IM Optimum Sustainable and development of PH Opportunities
Following the success of our PH Recovery Portfolio we have been working to add additional investment opportunities to our portfolios.
As part of our research we identified that environmental sustainability under strong corporate governance (ESG) has become a very important focus for businesses due to the change in demands from their target audience(s).
Our due diligence has also highlighted that brand trust is also a vital factor on top of this, so companies that can be seen to be playing their part in this approach yet still retain practices that would preclude them from obtaining a strong ESG rating are acceptable to this target demographic.
We will therefore be launching soon PH Opportunities to capitalise on this change in attitudes without the constraints of full ESG adoption required for a fully sustainable portfolio.
IM Optimum Sustainable
The core of the sustainable movement is, like all things business related, fuelled by very little other than consumer demand. It is the younger (sub 40) demographic that businesses are very much focused on attracting and these people are highly focused on ESG issues, to such a degree that they are often happy to pay a premium price for a product or service when they consider the company offering this shares their values.
As a group this younger demographic are highly critical and vocal regarding who they will spend their money with and companies that do not adapt to their way of thinking will very much lose out to companies that do. It is also worth noting that many of these consumers are happy to pay more for a similar product or service from companies they feel they can trust. So whilst big business addressing ESG matters is highly laudable in itself, it is also very important to remember that in the cold hard world of the pursuit of corporate growth and profit, companies who are seen to be aligned with the demands and expectations of these generations are the ones that have the most to gain. With IM Optimum Sustainable we are seeking to take advantage of these companies to deliver strong growth over the medium to long term. So whilst IM OS will play its own small part in backing the corporate ESG movement, it is doing so based on sound financial and economic realities, designed to maximise future returns by focusing in areas that are already subscribing to this narrative. To meet this objective IM OS will invest in a fully managed range of fully screened global ESG trackers.
This portfolio will be regularly reviewed by our Investment Committee and the asset allocation will be altered based on our research and market development with a focus on gaining value from the ESG ethos.
This portfolio will be available from 18/06/2021
PH Opportunities
The research we have carried out in building the IMOS portfolio also identified certain individual companies that we believe will offer very strong growth potential over the medium to long term. As we carried out or due diligence and finalised our thoughts it became clear that there was very strong potential for an individual stock selection approach with a broader brief than the constraints of full ESG (as mentioned above).
Whilst we were originally going to combine both approaches in one portfolio it has become very apparent that this approach would create compromises on our investment selection decisions and that two separate portfolios that you can blend together if you so wish would be far superior in meeting our overall objectives here.
We therefore intend to add an Opportunities portfolio to our PH portfolios in the coming weeks. We are finalising our due diligence for this portfolio and will write to again to confirm the holdings prior to its launch.
Any questions just ask.
Cheers
Julian
In what has been a very busy time for someone supposed to be relaxing and getting back to full fighting strength I have been very busy of late with PHS.
In a nutshell we have decided after much researsh and due diligence to split the tracker element and direct stock holding element into two separate portfolios.
Everyone is getting an email about this now and I have pasted the contents below for all to read:
Launch of IM Optimum Sustainable and development of PH Opportunities
Following the success of our PH Recovery Portfolio we have been working to add additional investment opportunities to our portfolios.
As part of our research we identified that environmental sustainability under strong corporate governance (ESG) has become a very important focus for businesses due to the change in demands from their target audience(s).
Our due diligence has also highlighted that brand trust is also a vital factor on top of this, so companies that can be seen to be playing their part in this approach yet still retain practices that would preclude them from obtaining a strong ESG rating are acceptable to this target demographic.
We will therefore be launching soon PH Opportunities to capitalise on this change in attitudes without the constraints of full ESG adoption required for a fully sustainable portfolio.
IM Optimum Sustainable
The core of the sustainable movement is, like all things business related, fuelled by very little other than consumer demand. It is the younger (sub 40) demographic that businesses are very much focused on attracting and these people are highly focused on ESG issues, to such a degree that they are often happy to pay a premium price for a product or service when they consider the company offering this shares their values.
As a group this younger demographic are highly critical and vocal regarding who they will spend their money with and companies that do not adapt to their way of thinking will very much lose out to companies that do. It is also worth noting that many of these consumers are happy to pay more for a similar product or service from companies they feel they can trust. So whilst big business addressing ESG matters is highly laudable in itself, it is also very important to remember that in the cold hard world of the pursuit of corporate growth and profit, companies who are seen to be aligned with the demands and expectations of these generations are the ones that have the most to gain. With IM Optimum Sustainable we are seeking to take advantage of these companies to deliver strong growth over the medium to long term. So whilst IM OS will play its own small part in backing the corporate ESG movement, it is doing so based on sound financial and economic realities, designed to maximise future returns by focusing in areas that are already subscribing to this narrative. To meet this objective IM OS will invest in a fully managed range of fully screened global ESG trackers.
This portfolio will be regularly reviewed by our Investment Committee and the asset allocation will be altered based on our research and market development with a focus on gaining value from the ESG ethos.
This portfolio will be available from 18/06/2021
PH Opportunities
The research we have carried out in building the IMOS portfolio also identified certain individual companies that we believe will offer very strong growth potential over the medium to long term. As we carried out or due diligence and finalised our thoughts it became clear that there was very strong potential for an individual stock selection approach with a broader brief than the constraints of full ESG (as mentioned above).
Whilst we were originally going to combine both approaches in one portfolio it has become very apparent that this approach would create compromises on our investment selection decisions and that two separate portfolios that you can blend together if you so wish would be far superior in meeting our overall objectives here.
We therefore intend to add an Opportunities portfolio to our PH portfolios in the coming weeks. We are finalising our due diligence for this portfolio and will write to again to confirm the holdings prior to its launch.
Any questions just ask.
Cheers
Julian
Phooey said:
Interested
A few Q's
1/ Which one do *you* think will go to the moon first?
2/ Do you have any past data / performance figures for either fund?
3/ Are you letting Pingu in?
Ta
I'd expect this to be more forward looking & betting on more people wanting/needing to hold these stocks & therefore driving up the relative priceA few Q's
1/ Which one do *you* think will go to the moon first?
2/ Do you have any past data / performance figures for either fund?
3/ Are you letting Pingu in?
Ta
From that I can gather - there will be increasing classification of customers into 3 buckets - fully sustainable investments only, kind of interested/ mostly and don't give a toss as long as it performs. So funds will increasingly have to cater directly to these & therefore may be a squeeze on potential investments for 1 & 2 - but which one would be hard to call
It's likely a multi year play, ESG regulation is still being drafted & regulators are aware of 'transition risk' as funds move towards carbon zero investments & will potentially leave 'stranded assets'
I'd expect fully sustainable to squeeze first, then people will relax a bit & balance with financial performance - then expect a new fund for all the undervalued dirty investments....
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