What is Environmental, Social & Corporate Governance (ESG) based investing?
ESG investing has become a very mainstream term in the investing world. But what does the terminology ESG actually mean?
The widely used understanding of ESG is that they are each factors taken into consideration that are input into the investment decision making process, rather than a defined outcome of investing per se. Measuring a firm on its environmental score, social factors and its corporate governance in the investment decision making process can give an indication as to the positive benefits a firm has to wider society, not just the profits/shareholder returns it is making. Some examples of each factor below:
In addition to ESG, other terms such as socially responsible investing (SRI), ethical investing and impact investing to name a few are also industry prevalent. Many of these terms it can be argued have largely the same theme, but with differing levels of stakeholder involvement/participation. Impact investing for example is designed to create a positive measurable impact on society or the environment, whereas ethical investing could just consider avoiding firms who create a negative externality such as crude oil exploration firms & tobacco firms for example, and supporting those that create a more sustainable way of living, e.g. carbon free power generation & recyclable packaging as a couple of examples. The challenge is that each term means different things to different people, and is largely based on an individual’s view of the world, and what they consider important personally.
Over the recent years there has been considerable growth in investments tending towards this persuasion, and it’s becoming increasingly apparent that an investment choice is not one between investment returns vs ESG, but one which can incorporate both in the long term. Mounting evidence suggests that funds/investments with high levels of exposure to ESG (measured using different ratings credentials) can in fact prove to be more resilient that those with less exposure. Many institutional investors are now driving the firms they invest into to make ESG an integral focus of their future vision in the boardroom’s where decisions are made, and as stakeholder participation increases, this will only self-perpetuate, and it is likely that businesses that do succeed in the future will likely have considered ESG and unified this into their business practices. The way in which objectives are achieved is becoming as important (if not more so) than the objectives themselves.
ESG Solutions available on the Novia Global platform
Novia Global is continuously striving to offer solutions that encompass all categories of investment, and that very much includes ESG based investments. We work with a number of DFM firms who offer ESG focused unitised solutions and ESG focused model portfolio solutions.
Below is a list of some of the providers that are available through the Novia Global platform. Click on the drop down sections to find out contact details and more information on the services each provides.
Please note that this list is not exhaustive and if you would like to select a solution that is not featured, please contact us on investment@novia-global.
EQ Investors Limited ("EQ") specialises in sustainable and impact investing, providing solutions which not only deliver an attractive return but are also committed to making a positive contribution to society or the environment.
EQ Investors is an award-winning, boutique wealth manager providing investment management services to individuals, small businesses and charitable endowments. On behalf of the financial advisers we work with, we cater for clients with a few thousand pounds as well as those with tens of millions. We are committed to excellence, not in trying to be the biggest. EQ Investors is also a founding B corporation in the UK, believing in business as a force for good.
The EQ Positive Impact Portfolios
Launched in 2012, the EQ Positive Impact Portfolios are a range of sustainable and impact investment solutions suitable for retail investors. They are designed for clients who want to go beyond ethical or social 'avoidance strategies'.
The EQ investment team has spent several years researching investments from across the socially responsible, ethical, sustainable and impact investment markets and has developed rigorous scoring methodologies. These help us to measure the degree of intentionality of a particular fund to have an impact on society and the environment as well as the real impact it has achieved. We attempt to identify where one can genuinely make a difference with investment capital, while not compromising on performance.
EQ's Investment Team is highly regarded for its expertise in the measurement of social and environmental impact. We demonstrate that responsible use of investment capital can help to tackle many of the environmental and social issues existing today.
As a result, our portfolios will give your clients the confidence to know they are investing in the fund managers who actively seek out social and environmental improvements over and above simply avoiding vices, thereby providing a more 'positive' or 'intentional' investment proposition.
The EQ Positive Impact Portfolios are not just about selecting investments that do good. They are also about selecting good investments. Alongside our social and environmental research processes, our investment management team apply all their knowledge to find investments which we believe have the potential to beat equivalent but less responsibly managed funds in terms of the financial returns they can deliver. We then build portfolios which we believe provide sustainable outperformance versus peers.
Key features of the offshore model portfolios available via the Novia Global platform:
A differentiated solution focused on investments with a significant and positive contribution towards people and planet
A range of model portfolios with different risk profiles denominated in sterling, euro and US dollars
A totally independent investment team conducting thorough financial due diligence and impact assessment
Investing only in FCA recognised funds offering daily liquidity
Attractive to overseas based investors, non-UK domiciles, offshore trust and fiduciary companies
Award-winning investment and impact expertise
Annual Management Charge: 0.35%
Want to know more?
If you would like more information about the EQ Positive Impact Portfolios or wish to meet our investment team please feel free to contact us.
Evelyn Partners is the UK’s leading integrated wealth management and professional services group, created by the merger of Tilney and Smith & Williamson. While our name has changed our commitment to delivering a world class experience to our clients remains as strong today as it always has been.
Founded more than 180 years ago, the group is trusted to look after £55.8 billion of assets (as at 31 March 2022) for our global clients from offices across the UK, Republic of Ireland and Channel Islands.
All of our services are underpinned by a disciplined investment process and delivered by highly qualified and experienced professionals.
Evelyn Partners’ purpose is to ‘place the power of good investment advice into more hands’ and believe we are uniquely placed to support financial advisers and their clients navigate the ever-changing investment landscape to achieve their goals.
At the heart of our investment approach is the understanding that clients are particularly sensitive to losses, rather than being averse to taking investment risk (in the form of uncertainty). At Evelyn Partners, we aim to Preserve and Grow the Real value of our client assets through Time.
The core beliefs of our investment philosophy are:
To achieve returns ahead of cash and inflation
Understand risks taken and particularly the risk of capital loss
To back our judgement and invest alongside our clients
The principle of diversification
To embrace the use of both funds and single securities
To use active and passive management techniques for the benefit of our clients
To be aware of and to minimise the impact of costs
Evelyn Partners offer the following sustainable models:
Evelyn Partners International Sustainable Conservative GBP
Evelyn Partners International Sustainable Cautious GBP, EUR, USD
Evelyn Partners International Sustainable Balanced GBP, EUR, USD
Evelyn Partners International Sustainable Growth GBP
Evelyn Partners International Sustainable Adventurous GBP, EUR, USD
Evelyn Partners International Sustainable Maximum Growth GBP
Please further information please contact:
Harriette Collings Director of Business Development Tel: +44 (0) 20 3818 6653 Mobile: +44 (0) 7894 233 034
Our focus on the client is matched by our investment in our people. We pride ourselves on the creation of a technology backbone, rigorous risk management and the provision of attractive investment solutions to clients.
Our focus on the client is matched by our investment in our people. We pride ourselves on the creation of a technology backbone, rigorous risk management and the provision of attractive investment solutions to clients.
Investing to suit Individuals
Managing an investment portfolio is a challenge and requires rigorous research, a long term focus and continuous monitoring. Our Investment Management team have developed three model portfolios to address these issues: Balanced, Growth and Adventurous. These strategies cover a wide range of investment objectives and risk profiles and can be accessed through a range of implementation styles from Core, Passive and ESG (Environmental, Social & Governance) in Dollars or Sterling.
The service has been designed to offer a high quality investment solution that matches individual goals, interests and risk appetites. It allows us to deliver outstanding value in a highly accessible, cost effective manner. Investors benefit from our established centralised investment process, which utilises a wide range of asset classes extending beyond the traditional combination of equities, bonds and cash.
The Benefits
Our aim is to create investments that deliver results for specific goals and objectives
Wide investment choice > Access to a range of managed portfolios each aligned to an objective and attitude to risk.
Expert Investment Management > Access to the best asset managers carefully selected by our in-house research team.
Flexibility to execute > Flexibility to execute trades within days to allow you to capture all opportunities.
Established track record > Helping clients compare their investments to manage expectations.
Economies of scale > Our clients benefit from discounted fees with platform partners and institutional rates.
Investment Strategy
Our investment strategy has three key components:
Asset Allocation > Focused on analysing the economic and financial environment, assessing the prospective returns and risks of each of the major asset classes, both over the short and long term.
Fund Selection > Our rigorous fund selection process involves assessing which funds best allow us to gain exposure to the most attractive asset classes, regions and themes.
Portfolio Construction > These two building blocks are then combined to create portfolios which are designed to meet their specific objectives and are actively managed with regular rebalancing.
Established in 1993 by Sir John Beckwith and Mark Johnson, Pacific Investments has a proven record of identifying industry-leading investment managers.
Established in 1993 by Sir John Beckwith and Mark Johnson, Pacific Investments has a proven record of identifying industry-leading investment managers. Over the years, the group’s various businesses have managed over US$50 billion on behalf of institutions, wealth managers, family offices and individuals. The group created Pacific Asset Management, the core asset management business within the group, to give investors access to fund managers who are proven to deliver superior investment returns over the long term. Firmly established within the global institutional infrastructure of the independently owned Pacific Investments group, Pacific Asset Management is able to take a non-biased approach to investing, something that incumbent, often listed business struggle with.
Asset management businesses which were originally founded by Pacific Investments include Thames River Capital which was sold to F&C/BMO, Europa Capital latterly sold to Rockefeller, Liontrust Asset Management plc and River & Mercantile. Additionally, Sir John’s global diversified investment group Pacific Investments also has considerable experience in emerging markets, having successfully founded Thames River Capital with its flagship emerging market fund Thames River Nevsky, which later became Nevsky Capital.
The Pacific Multi Asset Accumulator range blends ETFs, actively managed funds, factor strategies and direct securities to create affordable, diversified investment solutions. We offer a range of portfolio services to meet clients’ needs, available in Sterling, US dollars, Euros and AUD dollars.
Waverton is an independent investment management house dedicated to providing high quality investment outcomes through discretionary portfolios for both international and UK clients.
About Waverton
Waverton is an independent investment management house dedicated to providing high quality investment outcomes through discretionary portfolios for both international and UK clients. We are single minded in our approach and only provide investment management services - dovetailing with the financial and tax planning advice provided by financial planners. Founded in 1986, the firm now has over 170 members of staff, of which a quarter are portfolio managers with responsibility for over £9.6bn of assets (as at June 2023).
Benefits
We have developed the Waverton Portfolios on Novia Global to be specifically suited to the needs of international clients and advisers seeking a platform based solution.
The Novia Global portfolios are constructed using four specialist offshore Waverton OEIC Funds which are managed specifically to form the building blocks of the portfolio. The four Funds are the Waverton Tactical Equity, Global Core Equity, Bond and Alternatives Funds. The holdings of each fund are managed in a complementary way so that there is a consistent strategy throughout the portfolios.
The benefit of our approach is that it allows investors access to the entire Funds universe (both onshore and offshore) through the four Waverton building block funds. The portfolios, therefore, are not restricted in their holdings.
Our approach also allows us to provide the portfolios at a highly competitive rate.
We have an established history of running platform based portfolios in this way with a proven track record that we would be delighted to share with you.
Waverton Portfolios
All our portfolios invest on a global basis and are fully diversified by asset class, including the use of alternative assets.
There are five portfolios available through Novia Global which are listed below:
Waverton Conservative Portfolio
Waverton Defensive Portfolio
Waverton Cautious Portfolio
Waverton Balanced Portfolio
Waverton Growth Portfolio
Waverton Equity Portfolio
More details
Please click here for details of our approach and the current asset allocation and holdings of each portfolio.
We would be delighted to discuss your requirements and our approach in more detail.
