He pointed to companies such as Treatt, which creates natural flavours and fragrances for the drinks industry, and plays into Castlefield's environmental, social and governance metrics through the health and wellbeing angle to creating natural, sugar-free flavourings.
This is one of the top 10 holdings in the portfolio, which at 41 stocks is a concentrated and high conviction-led portfolio.
Another stock the manager likes, which meets sustainability challenges and presents long-term growth potential, is Blanco Technologies.
This specialises in data erasure software. As a result of being able to purge old devices, the company was able to recycle 55mn devices in 2022.
Tracsis is also in the fund's top 10, another software business that provides software to the rail and transport industry.
But while the fund is high conviction, and the manager likes to "let our winners run", Elton said they did not play favourites with stocks. "We are not big traders, but if we feel the valuation has run too far or a material headwind is developing, we might trim or cut it.
"That said, these are all businesses we like - or they would not be in the fund any more."
simoney.kyriakou@ft.com
