Sanlam opens sustainable income fund to external investors

Sanlam Investments has launched its Sustainable Global Dividend Fund to external investors, having received Article 8 approval. The fund, seeded with £200 million of internal money in December 2020, is managed by Mark Whitehead and Alan Porter, who joined from Martin Currie at that time.

Whitehead and Porter are experienced investors in sustainable income investing, using a bespoke sustainability scorecard and excluding companies with more than 10% exposure to alcohol, tobacco, gambling, weapons, adult entertainment, and fossil fuel extraction. The portfolio must hold an AA or AAA ESG rating from MSCI at all times.

“It’s an opportune time for funds focusing on the best sustainable, dividend-paying companies; and we mean sustainable in both senses of the word,” said Whitehead.

The managers’ 500 company universe is made up of businesses they consider to have offered attractive dividend growth while displaying sustainable leadership.

Dividend and sustainability analysis is then undertaken to produce a refined stock list of around 50 companies, of which they will own between 25 to 40. Current themes include power management, buildings emissions and nutrition.

“We are seeing promising signs of strong dividend growth and company cash flows and balance sheets are strong. We expect in the region of 7% dividend per share growth over the next few years, at the portfolio level,” added Whitehead.