The funds have been risk-profiled by Distribution Technology, making the products the first risk-profiled ethical investment option offered by a UK fund group, according to the firm. The risk ratings range from a rating of four through to eight.
The Alliance Trust Sustainable Future Defensive Managed Fund features a risk profile of four, while the Alliance Trust Sustainable Future Cautious Managed Fund has a risk profile of five.
Both are managed by lead manager and head of the Sustainable Future funds Peter Michaelis. He works alongside investment managers Simon Clements, co-manager and Stuart McMaster, who is responsible for the fixed income part of the portfolio.
The portfolios of the new funds will comprise various investments including shares, bonds and cash. The Sustainable Future Defensive Managed Fund aims to hold 45% of net asset value in global equities, with the rest invested in bonds and cash.
By comparison, the Sustainable Future Cautious Managed Fund aims to hold 60% in global equities. The companies the funds invest in align with the investment philosophy of the fund range, with the managers investing in sustainable companies they think have solid business fundamentals and are undervalued.
“We are launching these new funds in response to a growing demand from the intermediary market for a comprehensive range of risk profiled ethical investment opportunities,” Michaelis commented.
“The range that we now offer not only adds to the choice available, but for the first time, gives advisers clarity about risk levels so that they can match their client’s preferences and requirements to the right fund.”
The full range of risk profiled funds are:
• Alliance Trust Sustainable Future Defensive Managed Fund (risk-rated 4)
• Alliance Trust Sustainable Future Cautious Managed Fund (risk-rated 5)
• Alliance Trust Sustainable Future Managed Fund (risk-rated 6)
• Alliance Trust Sustainable Future Absolute Growth Fund (risk rated 7)
• Alliance Trust Sustainable Future Global Growth Fund (risk rated 8)
