Global investment manager Russell Investments has made new sustainable managed portfolios available to investors, providing them with access to sustainable, or environmental, social and governance (ESG), managers and strategies in a transparent structure.
The Russell Investments Sustainable Managed Portfolios are comprised of a combination of direct Australian equities holdings and allocations to units in some active managed funds.
With regard to the direct share component, the offering will invest in domestically listed equities selected on the basis of their ESG objectives and exclusions.
Similarly, the new product will also invest in active fund managers exhibiting high standards of ESG integration in their investment processes as identified by the Russell Investments research team.
“Russell Investments’ Sustainable Managed Portfolios are a significant development for financial advisers. Now they can invest their clients in portfolios which leave a positive sustainable impact on the world, while harnessing the institutional-grade depth of research and manager access that Russell Investments makes possible for retail and wholesale investors,” Russell Investments Australia head of advisers and intermediary solutions Neil Rogan said.
“By employing a multi-asset managed portfolio structure, we are able to satisfy a range of investor risk appetites.”
Russell Investments employ a total portfolio approach to constructing the offerings to ensure investment objectives are delivered while achieving sustainable outcomes.
Investors will have the choice between a growth and a balanced option, depending on their risk appetite.
According to Rogan, the new offering was developed as a result of client demand.
“In the past it was rare for advisers’ clients to define the type of investment factors they want to see in their portfolio,” he said.
“After another few years of devastating bushfires and floods, many Australians are eager to leave a positive impact on the environment in any way they can, and this includes how and where they invest.”
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