Future
Leaders
Portfolios

Invest responsibly using low-cost funds

The EQ Future Leaders portfolios are managed with a dual mandate to achieve long term capital growth at low cost by investing responsibly.

Responsible investing

Responsible investment means to avoid harmful businesses and enhance an investment’s environmental and social characteristics compared to traditional benchmarks.

To achieve this, the portfolios have a stringent exclusions policy, with specific thresholds covering all funds and asset classes. On top of that the portfolios achieve higher ESG performance and lower carbon footprints versus our benchmarks.

Designed to mirror global market returns

The portfolios are globally diversified and embed careful risk management at fund and portfolio level to closely track the performance of the market while staying within EQ responsible framework. The aim is to provide consistent returns year on year.

Low cost

These portfolios are built using low cost funds.

Low cost, responsible multi-asset portfolios

Excludes 10 harmful activities including armaments, fossil fuel extraction, tobacco and gambling

Excludes corporate ESG laggards that behave irresponsibly

Intentionally targets a higher average ESG and lower carbon footprint compared to traditional investments

Fully managed, with 8 risk-rated profiles, globally diversified across asset classes

Highly liquid

Available on platforms for ISAs, SIPPs, GIAs and offshore bonds

Portfolio management fee: 0.10%—0.20% (depending on AUM)

Underlying fund charges: 0.20% – 0.25%

Are you an offshore adviser? Click here.

A transparent investment philosophy

Here is what you can expect from EQ Future Leaders:

A consistent approach to avoiding harm

The portfolios have a stringent exclusions policy covering these 10 business activities, with specific thresholds covering all funds and asset classes:

Adult Entertainment
Alcohol
Arms
Controversial Weapons
Civilian Firearms
Military Firearms
Gambling
Fossil fuels (exploration & production)
Thermal Coal Extraction
Thermal Coal Electricity Generation
Tobacco

The portfolios additionally have a stringent approach to avoid controversial business behaviour.

Violations of international norms
ESG laggards* in each sector

*ESG laggards refer to companies performing worst when compared to their industry peers. Currently we base this on MSCI data to determine this.

Promoting social and environmental characteristics

Beyond our strict exclusions, the portfolios select funds with stronger sustainability profiles. Our equity allocation promotes social and environmental characteristics by targeting a higher average ESG score and lower carbon footprint than the global traditional benchmark*, which we transparently report on. *MSCI ACWI index.

Within fixed income, we will actively seek investments with positive sustainability outcomes such as green or sustainable development bank bonds.

Stewardship matters

Stewardship and engagement are at the core of the funds we hold. We pay particular attention to how the asset manager uses voting rights and company relationship to drive positive change. We prefer those that use their influence to improve sustainability profiles and reduce risks. EQ’s own stewardship strategy additionally contributes directly to improvements across key themes like climate change or human rights.