B Corp wealth managers, EQ Investors, has expanded its range of model portfolios with the introduction of its EQ Sustainable World strategy, designed with a dual mandate to achieve long-term capital growth while prioritising sustainability outcomes.
The expansion is designed to consider the full spectrum of sustainable investments and has been launched alongside a new multi-lens sustainability framework that provides the flexibility to invest across different sustainability approaches.
According to EQ, the portfolios are particularly well-suited to clients that have a broad interest in sustainability, with the framework around which the Sustainable World strategy will be managed consisting of three key pillars. Impact Solutions, for example, are specialist impact funds that invest in companies whose core products and services contribute towards the UN Sustainable Development Goals (SDGs).
Meanwhile, ESG Leaders funds invest in companies that are best managing environmental, social and governance risks (ESG). And Climate Focus funds invest in companies that show climate change leadership, including climate solutions, low-carbon leaders and those on a science-based pathway to transition.
The Sustainable World strategy will be co-managed by Damien Lardoux and Tertius Bonnin, and all funds within the strategy will exclude ESG laggards as well as exposure to six controversial sectors. Additionally, portfolio objectives for the funds are aligned to each of the pillars to ensure transparency and include UN Goal alignment, climate leaders’ exposure and ESG risk.
Sophie Kennedy (pictured), joint CEO at EQ Investors, said: “EQ has established the most comprehensive sustainable and impact investment offering in the UK wealth market, and we are very pleased to bring the Sustainable World strategy to the adviser market.
“While our core investment philosophy to date has been to offer different solutions to cater to specific sustainability preferences, we realise that client’s needs are always evolving, and this new strategy draws on the best ideas from EQ’s investment team who have over 10 years of experience investing across these sustainable pillars.
“This strategy has a high level of climate ambition, while also benefiting from other sustainable tailwinds, which will be reinforced through our active stewardship”.
The eight risk-rated model portfolios, available on most adviser platforms, provide exposure to global equity and fixed-income markets via a portfolio of underlying active and index funds. The portfolios will be re-balanced on a quarterly basis.
EQ’s DFM charge will be the same as its current MPS models, between 0.32% and 0.18% based on assets under management, with underlying fund charges of 0.45%.
