Designing a Sustainable Equity Fund

Redington

Tuesday, Dec 22
|   4 mins

10 second summary

  • We helped a client construct a sustainable equity fund which effectively integrates ESG as both a source of alpha and an element of risk.
  • The fund has outperformed the wider equity market since its inception whilst minimising its impact on the environment.

What was the problem?

  • A client wanted to design a fund that effectively integrates ESG as both a source of alpha and an element of risk.
  • It had to meet the following criterion:
    • Actively managed with an investment philosophy focused on selecting companies that solve global sustainability challenges.
    • Used positive screening, not negative screening.
    • Designed to outperform traditional developed market indices.
    • Good value for money

What was our solution?

  • Our advice was to implement a sustainable equity strategy. We undertook a bespoke manager selection process for the client. The fund was constructed with a manager that met the client’s specific criteria. It is strictly focussed on sustainability and the risks and opportunities associated with a transition to a sustainable global economy.
    • The manager employs a differentiated philosophy which effectively integrates ESG (as both a source of alpha and element of risk) into a more traditional fundamental quality equity process.

Risk Lens and Opportunities Lens

What was the outcome?

  • The resulting fund allowed the scheme to achieve the desired returns whilst minimising its impact on the environment.
  • By using ESG as a source of alpha, the fund has delivered strong outperformance versus the wider market since its inception.

Achieving returns whilst minimising environmental impact

Using ESG as a source of alpha

What does this mean for you?

  • We can assist you with finding or designing a fund that meets your specific objectives.

Want to know more? 

If you would like further information, please contact:

Pete Drewienkiewicz

Pete Drewienkiewicz

CIO-Global Assets

I am Chief Investment Officer for Global Assets. In this role, I advise a range of wealth managers, insurance companies and public sector pension schemes with combined assets of more than £400bn

Torsten Köpke

Torsten Köpke

Director

I have worked with investors of various types and different regulatory and accounting frameworks from a lot of locations around the globe. This enables me to understand the specific needs and options for our clients.

Ben Dewhurst

Ben Dewhurst

Associate

I supported in the creation of the Global Assets Team in 2018. Since then, my role has been focused on supporting wealth management firms and other asset owners achieve their long-term strategic objectives.

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