Future Leaders Portfolios

Invest in the sustainability leaders of tomorrow

Portfolios for everyone who wants to invest sustainably at low cost

Future Leaders portfolios are a one-stop-shop sustainable investment solution:

Low cost

These portfolios are built using efficient passive funds with low fund charges.

All our portfolios are globally diversified, and regularly rebalanced to reflect our views on the potential returns from different markets.

Sustainable

Future Leaders portfolios select the most sustainable companies based on published Environmental, Social and Governance (‘ESG’) data.

They also use thematic funds to provide an overweight to sustainable sectors (clean energy, healthcare and green bonds).

Low carbon

All this means that Future Leaders portfolios have a lower carbon footprint than market benchmarks.

And based on our scenario analysis, they are compatible with limiting global warming to 1.5 degrees.

Tailored to you

Future Leaders portfolios are suitable for ISAs (Individual Saving Accounts) and pensions. We operate several versions of Future Leaders to suit differing levels of risk.

Scroll down to see how we can help design the most effective and affordable portfolio for you.

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?

Get in touch

If you have a question about our Future Leaders Portfolios, we'd love to hear from you

Our qualified advisers are just a phone call away: please call us on 020 7488 7110 or email us.