Future
Leaders
Offshore

Invest sustainably using low-cost index funds

The Future Leaders portfolios are managed with a dual mandate: to achieve long-term capital growth by investing in the most responsibly run businesses whilst avoiding the most controversial activities.

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
Using tracker funds and ETFs that apply an ESG-best-in-class selection methodology
Avoids 11 harmful activities including armaments, fossil fuel extraction, tobacco and 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: 0.20%—0.10% (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

Future Leaders avoids the most harmful business activities. This includes:

  • Alcohol
  • Arms
  • Gambling
  • Pornography
  • Tobacco
  • Fossil fuels (exploration & production)

Benefiting stakeholders

We use tracker funds based on the MSCI SRI Filtered Paris-Aligned-Benchmark (PAB) methodology. 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

Check out our new carbon calculator tool to compare the difference in carbon intensity between our portfolios and the index:

Carbon calculator

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:

Comparison data as at May 2024. Source: EQ.

Platform availability

Our Climate Action portfolios are available on the following platforms:

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.

For all enquiries about our DFM service and the Climate Action portfolios, please get in touch:

Contact us