Quilter’s WealthSelect Managed Portfolio Service (MPS) has introduced two new funds to its sustainable range – the Alliance Bernstein Global Sustainable Equity Fund and the Redwheel Life Changing Treatments Fund.
The Alliance Bernstein Global Sustainable Equity Fund was introduced following a search to find a manager to complement the existing holdings within the global multi-thematic allocation. Additionally, the allocation to this part of the portfolio was increased as part of a further defensive shift in the equity mix.
The fund invests in companies that are positively exposed to environmentally or socially orientated sustainable investment themes derived from the UN Sustainable Development Goals (SDGs) such as health, climate and empowerment, education and employment, financial security and sustainable infrastructure.
Meanwhile, the Redwheel Life Changing Treatments Fund has been added to diversify exposure within the dedicated healthcare theme. The fund is intended to complement the existing healthcare holding, the Candriam Oncology Impact Fund, investing globally, including in emerging markets.
It also has a sustainable investment objective to support the UN SDGs by investing in companies contributing to good health and well-being, gaining this exposure via the proprietary sub-themes of Life Changing Drugs, Health System Strengthening and Life Changing Care, with a key focus on prioritising patient outcomes.
Bethan Dixon, portfolio manager at Quilter Investors, said: “The sustainable fund environment continues to evolve, and as such new and interesting funds are coming to market that we are interested in. We are very conscious of ensuring we have appropriate diversification in the sustainable range given the tendency for structural biases, so we are excited by the addition of two new funds helping to increase optionality within the manager mix.
“Both funds have strong investment processes and invest in companies at the forefront of sustainable solutions. The Redwheel fund in particular operates in a really interesting space with healthcare becoming increasingly crucial as populations age and pharmaceutical companies take the fight to complex diseases. Both funds will add a new dimension to the sustainable range and we are looking forward to seeing how they perform.
Elsewhere in the WealthSelect portfolios, Quilter noted that the Managed range “continues to see relative value in the UK”, adding that, within the UK, there has been a pick-up in merger activity along with more positive economic signs. Therefore, the portfolios have increased the allocation to the Quilter Investors UK Equity Opportunities Fund, managed by Artemis, given its positioning lower down the market cap spectrum and exposure to more domestically orientated earnings.
“As we approach the general election in July, the UK continues to offer intriguing valuation opportunities, especially down the market cap to more domestically focused companies. Rate cuts appear to be on the horizon, and this could result in a catalyst for good performance for the UK at a time when the recession is in the rear-view mirror and economic challenges ease a little,” concluded Dixon.
