In the Sustainable Share portfolio, industry screens take out around 15% of the universe, including almost all of the Consumer Staples sector for reasons of exposure to gambling and alcohol. This can have a negative impact on performance in falling markets, when the defensive nature of Staples tend to be more appealing. While from period to period this can make a big impact, over almnost seven years running the fund it has only had a modest impact on performance relative to the comparable unconstrained fund.
The other bias is towards smaller companies. As a number of large companies are screened out, by definition this pushes the fund towards smaller cap exposures for replacements. This can have a positive or a negative impact depending on the market environment