UK-based investment manager EQ Investors and Nordic asset manager Nordea Asset Management announced the launch of two new multi-asset funds designed to provide investors with access to a low-cost, sustainability-focused strategy with market-level returns.
The new funds include the Nordea EQ Future Leaders Multi-Asset Balanced Fund and the Nordea EQ Future Leaders Multi-Asset Adventurous Fund, targeting equity allocations of 60% and 80%, respectively, and with a dual mandate to deliver long-term capital growth at low cost while investing responsibly.
David Crawford, Head of Nordea Asset Management UK, said:
“We’ve seen huge demand for low-cost sustainable portfolios that deliver strong, consistent risk-adjusted returns against traditional benchmarks, and we believe this partnership brings something new to the market.”
Under the partnership, EQ Investors will serve as strategic adviser, responsible for setting asset allocations, monitoring the funds’ responsible investment characteristics and reporting to financial advisers and their clients. Nordea will manage the funds’ day-to-day operations, including liquidity and regulatory governance, using its BetaPlus Enhanced investment methodology, which combines elements of index investing and active stock selection.
According to the companies, the funds will follow the sustainable investment strategy underlying EQ’s Future Leaders portfolios, excluding investments in 10 business activities, including arms, fossil fuel extraction, tobacco and gambling, as well as companies with low ESG ratings or those that violate international norms. Specific exclusion thresholds will apply across all funds and asset classes, while the equity allocations will target a higher average ESG score and a lower carbon footprint than the MSCI All Country World Index, the companies noted.
Sophie Kennedy, Joint CEO at EQ Investors, said:
“We’ve spent more than a decade building our approach to sustainable and responsible investing, and these funds bring that experience to advisers in a single holding.”
