Ninety One, formerly Investec Asset Management, saw its Global Environment strategy return 42% in 2019, outperforming the MSCI All Country World's return of 27%.

The last quarter of 2019 saw the asset manager launch the Global Environment Fund under the strategy.

In addition, the Global Environment Fund was in 2019 the highest performer amongst the largest five finds in the Morningstar EAA Sector Equity Ecology Universe, which have the term environment or ecology in the name and invest globally.

Besides the performance of the fund, Ninety One emphasised how it addresses three pathways to a low-carbon future – renewable energy, electrification and resource efficiency. Even though it has limited its portfolio to just 24 companies, expanding beyond renewable energy was a key criteria of the fund.

The managers of the fund, Deirdre Cooper and Graeme Baker, were also active in engaging with portfolio companies, particularly on the issue of carbon emissions across scope 1, 2 and 3, on which the global investor community is increasingly looking to see comprehensive reporting.

“The world has a massive task ahead to transition from today’s unsustainable economy to one based on cleaner energy and transport, more efficient industrial production and more energy-efficient buildings,” said Cooper. “The products and services of select companies will be crucial in enabling that transition – providing those businesses, we believe, with a structural growth tailwind for years. That may prove a lifeline for investors in a growth-challenged world.”

At the end of 2019, 38% of portfolio companies were reporting scope 3 emissions comprehensively, up from 16% in 2018, and 67% were reporting scope 3 emissions for at least some categories, up from 32% a year previously. Approximately 67% of portfolio companies were reporting scope 1 and 2 emissions, compared with 52% in 2018.

The fund's six month performance saw it return 11.4%, compared with the MSCI All Country World's return of 8.9%. In addition, for each $1 million invested, Ninety One has calculated that 700 million tonnes of net carbon emissions has been avoided.

The Fund's top 10 holdings are:

Nextera Energy Inc - 6.9%

Aptiv Plc - 6.8%

Waste Management Inc -  6.0%

Vestas Wind Systems A/S - 5.3%

Schneider Electric SE - 5.1%

Brambles Ltd - 4.7%

Iltron inc - 4.5%

Orsted A/C - 4.3%

TE Connectivity Ltd - 4.3%

First Solar Inc - 4.3%