Heartwood adds lower-risk options to sustainable range – Portfolio Adviser

The global multi-asset investment manager said the Defensive Sustainable and Cautious Sustainable portfolios complete the range, which launched two years ago with the Balanced Sustainable and Growth Sustainable strategies.

While the Balanced and Growth strategies are predominantly invested in equities, the new strategies will be predominantly invested in fixed income, as well as cash in the case of the Defensive fund. All strategies are invested in alternatives, which includes commodities, hedge funds, property and infrastructure.

Benjamin Matthews will be responsible for the management of all funds across the range.

The funds aim to deliver a defined return over inflation aligned to its risk profile, while using positive and negative screens for sustainability.

Alcohol, tobacco, gambling, pornography and weapons are all excluded during the negative screen process.

Matthews said: “Achieving a positive impact on social or environmental outcomes combined with the delivery of compelling financial returns is at the heart of sustainable investing. It means finding investments that can deliver those positive outcomes, while at the same time excluding those that solutions they need to meet their risk/return objectives through sustainable investing.”

Heartwood CIO and head of investment management Noland Carter said the extension of the product range is a response to growing demand from investors.

Heartwood holds £3.4bn assets under management and is a subsidiary of Swedish bank Handelsbanken.

Sustainable strategies performance benchmarks (net of fees)

Defensive Sustainable CPI + 1% p.a. over a rolling five-year period
Cautious Sustainable CPI + 2% p.a. over a rolling five-year period
Balanced Sustainable CPI + 3% p.a. over a rolling five-year period
Growth Sustainable CPI + 4% p.a. over a rolling five-year period

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