EQ Investors (EQ), the B Corp wealth manager, has expanded its range of model portfolios with the introduction of the EQ Sustainable World strategy. Designed with a dual mandate: to achieve long-term capital growth while prioritising sustainability outcomes, the new solution considers the full spectrum of sustainable investments.
In launching the new proposition, EQ has developed a multi-lens sustainability framework that provides the flexibility to invest across different sustainability approaches. The portfolios are particularly well-suited to clients that have a broad interest in sustainability.
The framework around which the Sustainable World strategy will be managed consists of three key pillars:
- Impact Solutions: specialist impact funds that invest in companies whose core products and services contribute towards the UN Sustainable Development Goals (SDGs).
- ESG Leaders: these funds invest in companies that are best managing environmental, social and governance risks (ESG).
- Climate Focus: funds investing in companies that show climate change leadership. This includes climate solutions, low carbon leaders, and those on a science-based pathway to transition.
All funds exclude ESG laggards, as well as exposure to six controversial sectors.
The strategy will be co-managed by Damien Lardoux and Tertius Bonnin, both long-standing members of EQ’s award-winning sustainable investment team.
To ensure that the strategy meets EQ’s high-level of ambition and accountability, portfolio objectives are aligned to each of the pillars. EQ’s sustainability reporting will ensure transparency and include UN Goal alignment, climate leaders’ exposure and ESG risk.
EQ’s stewardship approach is integral to delivering on sustainability outcomes of these portfolios, through engagement with fund managers, collaborative initiatives across strategic themes, AGM attendance and policy advocacy.
Sophie Kennedy, Joint CEO at EQ 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.
“Whilst our core investment philosophy to date has been to offer different solutions to cater for specific sustainability preferences, we realise that clients’ 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 & 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%.
