Making an impact

It’s almost three years since we launched our managed Positive Impact Portfolios (“PIPs”) and they have been a terrific success, both in terms of performance and popularity. So much so that a number of other wealth managers have also started recommending EQ’s PIPs to their clients.

Facebooktwittergoogle_pluslinkedinmailFacebooktwittergoogle_pluslinkedinmail   by Damien Lardoux, 22nd June 2015

As the name suggests, PIPs are designed to emphasise investments that are expected to have a beneficial impact on our environment and society but they are also about selecting investments that are expected to deliver good returns.

A brief history

Making an impact timeline

Until recently investing with a conscience meant excluding certain opportunities from your portfolio because they did not comply with the ethical criteria. Typically these would be investments in tobacco, armaments or mining, which would lead to periods of underperformance when such sectors were regarded as offering good value. This meant that ethical investors used to pay a financial penalty for keeping true to their beliefs. Inevitably that greatly reduced the attractions of ethical funds.

More recently a new approach has emerged: making a positive commitment to companies that are clearly trying to do good, as well as maximising their financial returns. This is a much more attractive concept. Many of these companies operate in growth sectors and their higher standards of corporate governance should lead to less risk of fines from regulators as well as
more engagement from staff.

This is exactly the approach that our Positive Impact Portfolios follow. Launched almost three years ago, they have a unique fund selection process developed by the EQ Investors research team. Each portfolio holds 20-25 funds, covering bonds as well as equities.

PIPs are eligible for ISAs and SIPPs as well as general investment accounts. If you care about how and where our portfolio is invested then speak to your adviser about the merits of switching. They have recognised the strength of the unique fund selection process developed by our research team.

About the author: Damien Lardoux

Damien has an MSc in Management from Reims Management School and an MSc in Wealth and Asset Management from ESCP-EAP Paris Business School. He is also a CFA charter holder, being a regular member of the CFA Institute and CFA UK society.

Before joining EQ Investors, Damien worked for Bank of America Merrill Lynch being responsible for asset allocation, security selection and portfolio construction. Damien now acts as the portfolio manager for the EQ Investors Balanced, Positive Impact and Multi Index portfolios. He also co-chairs our Fund Selection Committee.

Damien is a devoted sportsman, playing judo and squash on a regular basis. He also enjoys hiking, to very far places such as the Himalayas and Kilimanjaro.

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