Stonehage Fleming launches Global Sustainable Investment Portfolios

Reyneke Van Wyk, Head of the Investment Division in South Africa at Stonehage Fleming

Stonehage Fleming Investment Management (“SFIM”) the UK investment division of one of the world’s leading international Family Office, has announced the launch of its Global Sustainable Investment Portfolios (“GSIP”).

SFIM currently manage GBP 7.4 bn in mainstream multi-asset portfolios. GSIP will utilise the Group’s existing multi-asset investment process, with the same investment and performance objectives, but socially responsible objectives will also be applied. Stonehage Fleming construct portfolios by selecting funds managed by managers from across the industry, blending their skills to meet a variety of risk-return objectives.

Mona Shah, Director at Stonehage Fleming Investment Management, says: “We strongly believe that values-based investing does not need to compromise returns. By launching our Global Sustainable Investment Portfolios, we are helping clients to achieve their maximum impact potential in line with their values. The managers we select will pass a high threshold of qualitative and quantitative analysis, of both their investment processes and their ESG credentials.”

The overlap in funds between GSIP and the Group’s existing portfolios is very low as the Fund Managers selected will be required to overcome different and demanding hurdles to be included, such as their approach to Governance, and impact methodologies.

GSIP will initially be focused on equities, fixed income, alternatives and cash. The headline asset allocation and the risk-adjusted targets will be very similar to the mainstream portfolios.

Graham Wainer, Chief Executive Officer and Head of Investments at Stonehage Fleming Investment Management, adds: “Equity investments will constitute the largest position in GSIP, but we are also excited by the opportunities within fixed income, which has been largely overlooked by ESG investors to date. Bond investors have longer time horizons than their equity peers, and more nuanced relationships with management teams and, critically, with governments. This will be an important asset class for GSIP.”

Guy Hudson, Partner and Head of Group Marketing at Stonehage Fleming, concludes: “Our proprietary research piece, ‘The Four Pillars of Capital’ (2018), showed that 75% of respondents wanted their values to be reflected in their investments but only 21% were actively taking this approach. We see socially responsible investing as a vital expression of our clients’ “social capital”, or the way they engage with and contribute to wider society. In launching our Global Sustainable Investment Portfolios, we are responding to significantly increased client interest in using their capital to effect positive change in the way companies engage with the environment, communities and their shareholders.”