Heartwood Investment Management launches four sustainable multi asset funds
Heartwood Investment Management (Heartwood), the asset management arm of Handelsbanken in the UK, has launched four sustainable multi asset funds designed to make sustainable investing accessible to everyone, regardless of portfolio size and risk tolerance, without compromising performance.
The funds – Defensive Sustainable, Cautious Sustainable, Balanced Sustainable, and Growth Sustainable will be actively managed with the same investment process as Heartwood’s core total return funds. Each of the funds has a clear target return benchmark and aims to deliver a positive real return over a five-year period.
Co-managed by Ben Matthews and Matt Toms with the support of a wider investment team, Heartwood’s sustainable investment process is built around three pillars:
Exclusions – negatively screen out businesses with significant revenue exposure to tobacco, alcohol, weapons, adult entertainment or gambling
Strong Environmental, Social & Governance (ESG) integration – invest to incentivise corporates and governments to improve their environmental, social and governance impact
Impact investing – investments which contribute to solving environmental and social problems and align with the United Nations Sustainable Development Goals, for example, social housing or renewable energy generation
Heartwood began its research into developing a rich multi asset sustainable proposition in 2013 and created four global multi asset sustainable strategies across the risk spectrum – Defensive, Cautious, Balanced and Growth. It has successfully run portfolios since March 2016 for Balanced and Growth, and October 2017 for Defensive and Cautious. Since inception, the Balanced Sustainable strategy has achieved a total return of 24.2per cent compared to 21.4per cent for the core Balanced strategy (as at 31 August 2019) over the same period.
Noland Carter (pictured), Head of Heartwood Investment Management and Chief Investment Officer, says: “Our range of sustainable funds offer investors a different approach. Unlike other strategies, our funds are truly multi asset, not just equities or bonds, and we provide solutions across the entire risk spectrum. We’re targeting positive outcomes across the whole of ESG – not just one theme – and by including ESG-integrated and impact investments rather than relying on negative screening, we can access a much broader investment universe.”
Matthews says: “Having successfully trialled these strategies for over three years, we’ve seen significant growth in demand across our entire investor base, and we expect this trend to continue. Our trial period revealed that our sustainable strategies achieved similar returns to our core strategies and so we are confident that investing sustainably does not compromise performance.”
Toms adds: “Alongside the financial targets, our sustainable funds look to achieve two sustainable goals: to incentivise corporates and governments to improve their environmental, social and governance impact, and to make investments that contribute to solving ESG problems and align with the United Nations Sustainable Development Goals. A positive impact with a positive return.”