EQ Investors has partnered with Nordea Asset Management to launch two responsible multi-asset funds, focusing on market-like ESG-oriented returns.
The two funds offer different levels of equity exposure. Nordea EQ Future Leaders Multi-Asset Balanced fund targets 60%, while the Nordea EQ Future Leaders Multi-Asset Adventurous fund aims for 80%.
The funds, which are based on EQ’s Future Leaders strategy, will be managed day-to-day by Nordea. EQ, meanwhile, operates as strategic adviser: setting asset allocation, monitoring the funds’ responsible investment characteristics, and reporting to advisers and their clients.
Sophie Kennedy, joint CEO at EQ, said: “Investing responsibly shouldn’t mean taking unnecessary risks with returns. When you exclude certain sectors and companies, a portfolio can behave differently from the wider market in the short term.
“Over the past five years we’ve invested heavily in managing that, so clients can invest in line with their values while still aiming for market-like returns over time.”
The strategy excludes 10 harmful industries, including armaments, fossil fuel extraction, tobacco, and gambling. It also screens out ESG stragglers in each sector and companies that violate international norms.
Through this screening, the funds’ equity allocation targets a higher average ESG score and lower carbon footprint than the MSCI All Country World WI Index.
Each fund is available on platforms for ISAs, SIPPs, GIAs and offshore bonds, and will offer a founder share class and a standard share class. Early investors can access the founder share class, which carries an ongoing charges figure of 0.35% for both funds.
David Crawford, head of Nordea’s UK branch, said: “We’re thrilled to be working with EQ Investors and see it as a wonderful opportunity to partner with a like-minded firm that is leading the way in sustainable investing.”
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