Tilney, part of UK wealth management and professional services group Tilney Smith & Williamson, has announced the launch of the Tilney Sustainable Adventurous Portfolio, a new addition to the Tilney Active Portfolio fund range.
The new fund is aimed at retail investors seeking a long-term growth focused portfolio of investments that demonstrate strong ESG and sustainability credentials.
The firm writes that the launch represents a further expansion of Tilney Smith & Williamson’s ethical and sustainable investment solutions which include bespoke portfolios, Sustainable Managed Portfolio Service and an existing pooled fund.
The new Tilney Sustainable Adventurous fund will sit alongside the existing award-winning Tilney Sustainable Portfolio, which was launched in 2009 as a unit trust and later converted to an ICVC. The latter fund has been renamed the Tilney Sustainable Cautious Portfolio ahead of the launch of the new Sustainable Adventurous fund to clearly differentiate the two strategies. The existing fund, which has grown to over GBP300 million since inception, was crowned the Best ESG Investment Strategy in the 2021 City of London Wealth Management Awards.
In addition to Tilney Smith & Williamson’s ethical and sustainable pooled fund capabilities and experience managing bespoke ESG and ethically screened portfolios for individuals, trusts and charities, the firm has a ten-year track record on its Sustainable Managed Portfolio Service strategies.
The lead manager for Tilney Sustainable Adventurous fund will be Genevra Banszky von Ambroz, portfolio manager on both the Tilney Sustainable Cautious Portfolio and the Tilney Sustainable MPS range. The firm writes that she will leverage the strength of the Tilney Smith & Williamson research analyst teams, the group’s Asset Allocation Committee and Stewardship and Responsible Investment Group.
The portfolio will be comprised of third-party funds that back companies involved in areas such as the conservation of energy and natural resources and resource efficiency; sustainable transport and infrastructure; the provision of high quality products and services of long-term benefit to society e.g. healthcare and affordable housing; sustainable food and water management; and, companies that support the UN’s Sustainable Development Goals through robust human rights policies, community involvement and the development of staff. The portfolio will seek to avoid funds with direct exposure to companies involved with the production of alcohol for consumption, gambling, palm oil, armaments, pornography and tobacco.
Genevra Banszky von Ambroz, lead portfolio manager of the fund, says: “Following the success of our existing strategy, which has delivered strong risk-adjusted returns since launch and grown to over GBP300 million in size, we have had strong client and adviser demand for a sustainable multi-asset fund with a higher weighting to equities, suited to investors with a long-term horizon and greater risk appetite. While there will be a fair amount of commonality in the underlying funds selected between the two funds, the Sustainable Adventurous Portfolio will have a circa 75 per cent allocation to equities, compared to 45 per cent in the existing Sustainable Cautious fund. For diversification purposes the Sustainable Adventurous fund will also have allocations in real assets such as energy efficiency and renewable infrastructure projects, bonds, ethically sourced physical gold and cash. The aim of the funds is to provide investors with a single, ‘one-stop –shop’ pooled investment solution, diversified globally that meets their needs and aligns with their values.”
The Tilney Sustainable Adventurous Portfolio has a 1.59 per cent ongoing charge figure, inclusive of a 0.75 per cent annual management fee and the costs of the underlying funds it will invest in. The fund will be made available on a number of platforms including Bestinvest, Tilney Smith & Williamson’s online investment service for self-directed investors, as well as the Aviva platform, Standard Life Elevate and Pershing Nexus.