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
8 risk profiles ranging from 30-100% equity
Overweight on sustainable sectors: clean energy, healthcare, green bonds
Lower carbon footprint than market benchmarks MSCI ACWI IMI
Portfolios will evolve their sustainability ambition as the universe of passive strategies grows
Available for ISAs, SIPPs, GIAs and offshore bonds on a wide range of adviser platforms
Portfolio management fee: 0.20%0.10% (depending on AUM)
Underlying fund charges: ~0.25%
Are you an offshore adviser? Click here.
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Sustainability credentials

A variety of sustainability data can be used in passive funds to create sustainability outcomes. We set high ambitions when designing the Future Leaders Portfolios 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

Environmental, social and governance assessments look at how responsibly any given business operates, and compares their practices to their industry peers.

The core of our Future Leaders Portfolios only select companies that are “ESG leaders” in each industry (top quartile). This means they show leadership in material categories, including:

Environmental: how a company impacts the natural environment, for example through water use or carbon emissions.

Social: how a company treats people, such as its employees, its customers, and its local community.

Governance: how the business polices itself, including the independence and expertise of its board.

This is achieved through adhering to MSCI SRI Filtered Paris-Aligned-Benchmark (PAB) methodology.

Contributing to solutions

We use the Sustainable Development Goals as a framework for seeking companies providing solutions to unmet social and environmental needs. Our portfolios are designed to overweight these companies.

Satellite funds of our Future Leaders Portfolios include sustainable thematic index tracking funds that positively select solutions companies, including:

  • climate solutions
  • health innovation
  • digital security
  • water
  • green bonds.

Carbon footprint

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

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

There are eight risk levels available with equity exposure ranging from 30% to 100%. 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: