The Ambienta X Environmental Mid Cap Fund is a specialised equity long only UCITS based on a structural, long-term fundamental conviction on European Mid Cap sustainability focussed stocks.
The fund targets 100% investment in companies whose products and services have a positive impact on resource efficiency and/or pollution control, as measured by the proprietary Ambienta Sustainability Index scoring methodology. Environmental sustainability is assessed as a potential indicator of competitive advantages and value enhancement. In addition, comprehensive ESG due diligence is performed on every portfolio company and on every new potential investment.
This thematic approach is combined with active fundamental research, applying an investment process that Ambienta originally developed and successfully implemented in private equity to construct a portfolio of 25-35 individual mid-cap (market cap typically between $500m and $10bn) stocks that we identify as sustainability champions. This focus enables a limited overlap with other ESG funds or ESG ETFs.
The fund is managed by Fabio Pecce and Francesco Cavallo, who are supported by a team of partners, seasoned professionals and investment analysts, embracing the same ethos and values. The team leverages the over decade-long experience of Ambienta’s Sustainability & Strategy team leveraging thematic knowledge across asset classes.
The fund focuses on investments in liquid, listed European and US companies with a market capitalisation of less than US$10bn, which have sustainability-driven competitive advantages and are priced at attractive valuations. The portfolio selection process selects 25-35 high conviction stocks from a focus list, which is derived from Ambienta’s investable universe of over 1,000 sustainable, publicly listed companies.
Environmental sustainability trends, namely Resource Efficiency and Pollution Control, represent a theme that cuts across traditional sectors, shape industries and value chains and ultimately drive risks and opportunities for companies and investors. Sustainability, similarly to digitalization, is and will permeate society for decades to come. Providing sustainable solutions to global environmental issues is a strong source of competitive advantage. Ambienta consistently focuses on understanding and getting ahead of these trends, to foster investment ideas generation, improve local team origination effectiveness, unlock fruitful relationships with entrepreneurs and managers and ultimately deliver strong financial returns for investors across our businesses.
Ambienta’s Sustainability and Strategy team is our dedicated division to both develop investment ideas and support investment cases discussion across our asset classes, and build our proprietary sustainability measurement approaches.
As at November 29, 2023. Fund Inception date: April 29, 2022