The EdenTree Sustainable European Equity Fund won the Best Sustainable European Equity Fund category at the Investment Week Sustainable Investment Awards 2026.
EdenTree Investment Management also won awards on the night for Group of the Year for ESG Integration, Best Sustainable Investment Portfolio Range, and Sustainable Investment Fund Management Group of the Year (AUM under £20bn).
Here, Chris Hiorns, head of European Equities at EdenTree Investment Management, discusses the group's proprietary sustainability framework, performance drivers for the fund, and how the strategy has evolved since launch.
What is the expertise of the team running the fund and what are you trying to achieve for investors, as well as the wider global impact?
The EdenTree Sustainable European Equity Fund is managed by a highly experienced team, who combine deep European equity expertise with dedicated sustainable investment analysis.
Chris Hiorns, head of European Equities, has led the fund since 2007 and is supported by David Osfield, co‑manager since 2016, and associate fund manager Lauren Smith, who joined in 2024.
The fund is supported by EdenTree's wider investment team, including our sustainable investment analysts, who work alongside the fund's management team to ensure sustainability is integrated into portfolio construction and stock selection.
For investors, we aim to deliver attractive long-term returns by investing in sustainable European businesses, directing capital towards companies making a positive contribution to people and planet.
Beyond the capital we allocate, we seek to create wider positive impact through active stewardship and engagement, working with investee companies to encourage higher standards of corporate behaviour and support positive environmental and social outcomes to create a more sustainable economy.
What are key elements of your sustainable investment process on the fund?
The fund combines a disciplined, value-oriented approach with EdenTree's proprietary sustainability framework, the EdenTree Standard. Every company must meet the EdenTree Standard before it can be considered for investment, ensuring holdings make a positive contribution to people and planet through their products, services and/or operations. Companies whose activities are fundamentally misaligned with the fund's sustainability objectives are excluded from the investable universe.
Sustainability analysis and investment analysis run in parallel. Potential investments are assessed by both the investment team and our dedicated sustainable analysts, combining fundamental company research with a detailed evaluation of sustainability-related risks, opportunities and long-term value creation. This assessment draws on company disclosures, regulatory filings, engagement insights and selected third-part research, with analyst judgement remaining central throughout the process.
Stewardship is an integral part of how the fund invests and monitors companies. Through ongoing engagement and voting, the team seeks to encourage positive change. Progress is reviewed continuously, with companies reassessed against the Standard and engagement objectives monitored over time. Where concerns remain unresolved, escalation may include collaboration engagement, voting action or ultimately disinvestment.
What contributed to fund performance over the judging period and how has the portfolio evolved, particularly over the 12 months to 28 February 2026?
Over the 12 months to 28 February 2026, the fund's positive performance was driven primarily by successful stock selection across a diverse range of sectors and geographies, reflecting the team's focus on identifying attractively valued businesses whose long-term prospects were not fully reflected in market prices.
Financials were among the strongest contributors to returns; holdings including Commerzbank, ABN Amro, Bank of Ireland and Banco Santander benefitted from a supportive backdrop for European banks.
Healthcare also contributed positively, led by holdings such as Sandoz, where resilient earnings and attractive valuations became increasingly recognised by the market.
The fund also benefitted from high-conviction investments across the consumer, communications and industrial sectors. Holdings including Orange, Rexel, Mersen, Indus Holding and Nokia generated strong returns, as their operational progress and long-term growth opportunities became more widely appreciated by the market.
Several of these holdings provided indirect exposure to structural themes including electrification, infrastructure investment and digital connectivity, while still meeting the fund's valuation discipline.
The portfolio continued to evolve during the period, increasing exposure to selected consumer discretionary, communication services and industrial businesses where the team identified compelling long-term opportunities.
The fund also adopted the UK SDR Sustainability Focus label in February 2026, further strengthening the fund's sustainable investment proposition.
Why is winning a Sustainable Investment Award important to your team?
Winning this award is a significant recognition of the work that has gone into building and evolving the fund over many years.
For the team, it validates our belief that investors do not need to choose between sustainability and investment performance, and that a disciplined, value-oriented approach can sit alongside a rigorous sustainable investment framework.
It is particularly meaningful because it recognises the contribution of both our investment team and our sustainability analysts, whose close collaboration underpins every aspect of the strategy, from stock selection and portfolio construction to stewardship and engagement.
Most importantly, the award provides independent recognition of the value we strive to deliver for our clients by combining long-term investment outcomes with a commitment to support positive environmental and social impact.
For more information about the Sustainable Investment Awards, click here.
