Future
Leaders
Offshore

Invest in the sustainability leaders of tomorrow

For clients who want to invest sustainably at low cost

Launched in 2020 in response to strong client demand, Future Leaders is the first range of passive, multi-asset, sustainable portfolios in the UK:

  • Too many ESG ETFs or fund trackers have very limited sustainability screening
  • The sustainability credentials of the largest index fund providers are quite limited
  • With the ambition to become more sustainable over time, EQ will engage with providers to push for positive change.

Future Leaders builds on our strong track record:

  • EQ has been managing impact portfolios for over 10 years.
  • Our Low Cost, passive portfolios have a strong performance history:

Diversified, low cost portfolios of passive funds targeting sustainability leaders

Best-in-class approach using ESG-integrated tracker funds and ETFs
Hard negative screens, including armaments, tobacco & gambling
Globally diversified across asset classes
4 risk profiles ranging from 30-100% equity
Overweight on sustainable sectors: clean energy, healthcare, green bonds
Lower carbon footprint than market benchmarks
Portfolios will evolve their sustainability ambition as the universe of passive strategies grows
Portfolio management fee: 0.25%0.125% (depending on AUM)
Underlying fund charges: ~0.25%

Are you an UK adviser? Click here.

Sustainability credentials

Passive investing lends itself well to a best-in-class approach and can also incorporate negative screening. With this in mind, we have designed Future Leaders around the Impact Management Project’s ABC framework:

Avoiding harm

We use passive funds that screen out the most harmful sectors:

No tobacco No armaments
No alcohol No gambling

Benefiting stakeholders

We use tracker funds based on the MSCI Socially Responsible Investing (SRI) Indexes. These target the most responsible companies based on their disclosed ESG data.

This biases portfolio exposure towards companies that are managing their social and environmental impacts well, and demonstrating good corporate governance.

Contributing to solutions

Future Leaders uses thematic ETFs to increase portfolio exposure to sectors that are helping to solve global problems.

There are currently three ETFs in the portfolios, focusing on:

  • Healthcare
  • Clean energy
  • Green bonds

Carbon footprint

The chart below shows how Future Leaders stacks up against our Positive Impact and market benchmarks:

Analysis based on Scope 1, 2 & 3 emissions. Carbon data: Urgentem.

Sustainable Development Goals

We use the same proprietary technology to map Future Leaders' underlying holdings to the Sustainable Development Goals as we do for Positive Impact:

Sustainability compromises

Having been strong advocates for impact investing for many years, we are fully aware of the sustainability compromises involved in a passive, best-in-class ESG approach. Over time we expect these factors to change for the better, for example as ex-energy trackers become available:

Future leaders portfolios have exposure to companies involved in: fossil fuel extraction, distribution and services, metal and coal mining, unhealthy food and beverages, ocean and air freight.

Alignment to the Sustainable Development Goals is lower than the Positive Impact strategy, as the focus of ESG funds is on responsible operations rather than sustainable products and services.

Passive funds don't engage with their underlying holdings to drive positive change in the same way as active funds.

For an active portfolio approach to impact investing, why not consider our Positive Impact strategy?

Platform availability

Future Leaders portfolios are currently available offshore on the following platforms, with others available upon demand:
  • Novia Globa
  • 7IM

Risk profiles

Future Leaders portfolios are available offshore denominated in GBP. To download factsheets please click on the links below:

Find out more

EQ Investors is an award-winning investment manager with a strong in-house research team. Click to find out more about our DFM service.
Admirably level-headed fund managers
Anthony Hilton, The Evening Standard For all enquiries about our DFM service and the Future Leaders portfolios, please get in touch: