Financial Adviser Foster Denovo Limited (www.fosterdenovo.com) has today announced the launch a new climate-impact-focused discretionary portfolio, the FD Climate Impact Sustainable Dynamic Portfolio.
The new impact portfolio will sit alongside and be able to be integrated within existing FD Active and Passive Sustainable Dynamic Portfolio (SDPs) solutions. It is designed to appeal to clients desiring a more focused exposure to climate impact themes, including electrification, energy efficiency, development of clean and alternative energy sources, and companies who are leading the decarbonisation transition.
The launch follows increased demand from Foster Denovo clients for a climate focused, thematic portfolio solution that can sit alongside the broader ESG and sustainable strategies. Foster Denovo recognises that tackling climate change is at the forefront of many clients’ minds.
Comprised of best-in-class fund managers, the Climate Impact SDP will be managed on a discretionary basis, with clear impact related objectives, while still maintaining a strong focus on clients’ financial paths and risk profiles. It will be principally comprised of actively-managed funds alongside a small level of passive exposure. It is likely that the portfolio will evolve as more climate focused offerings become available.
The portfolio is subject to the same robust risk process underpinning Foster Denovo’s entire SDP range. This includes rigorous fund filters and ongoing suitability and risk assessments, led by Foster Denovo’s Head of Investment Research, Declan McAndrew, alongside independent external expertise including sustainable and impact investing fund research specialists Worthstone.
Roger Brosch, CEO of Foster Denovo commented: “This launch is driven by increasing feedback from clients. Alongside broader strategies, they want dedicated solutions to address ESG-related themes, with climate change being front and centre.
“We have seen a plethora of new sustainable products come to market, many of which appear to just be the rebadging of previous offerings. It was, therefore, essential for us to develop a discretionary portfolio that would allow us to harness the best-in-class thematic managers, while setting strict impact and return objectives best suited to our clients’ needs. Also key was control to review and make changes in an ever-evolving landscape of climate-related opportunities and challenges.
“We are delighted to bring this offering to our clients and expect other solutions will follow as and where we see the demand from, and benefit to, our client base.”
Declan McAndrew commented: “Part of our plan for the SDP range was to offer clients dedicated thematic impact vehicles which can deliver on specific ESG related objectives. These impact vehicles can be used as satellite exposure and dovetail with the existing ranges. We want to provide clients with access to solutions that can cater to wherever they sit throughout the spectrum of capital – from ESG risk mitigation all the way through to impact investing.
“As a pure equity solution, which is majority actively managed, this will naturally sit higher up the risk scale. However, we wanted to bring clients a solution that would allow them to best deliver on their climate impact objective, while ensuring they are still being delivered a competitive financial risk adjusted return.”
