Quilter Investors has announced it has launched the Quilter Investors Timber Equity Fund, a sub-advised mandate to be used within the WealthSelect Managed Portfolio Service.
Managed by Pictet Asset Management, the mandate will focus on companies supporting sustainable forestry and producing wood-based materials, therefore ensuring trees are replanted, nurtured and allowed to re-grow and capture carbon dioxide, whilst seeking to maintain biodiversity.
The fund will also focus on companies through the timber value chain which provide bio-degradable substitutes to plastics, concrete or steel.
The fund will exclude companies that have exposure, above a certain threshold, to certain activities that have negative impacts on the environment or society. This includes avoiding investments in countries where forest legislation is weak or not enforced.
Quilter Investors has launched the fund to support the Quilter WealthSelect Managed Portfolio Service, which earlier this year introduced Responsible and Sustainable portfolios for clients who desire a greater focus on ESG factors within their investments.
WealthSelect currently uses a range of sub-advised mandates, as well as third party funds, giving investors access to a wider range of managers, including those with a particular ESG focus.
Stuart Clark, portfolio manager of Quilter’s WealthSelect, says: “We are really excited to be bringing an innovative and genuinely interesting thematic strategy to the WealthSelect portfolios. The timber industry has the potential to touch upon many areas where tackling environmental challenges is becoming an integral focus, be that forest management, packaging solutions or the construction industry.
“When launching the new WealthSelect Responsible and Sustainable portfolios we wanted to ensure that the funds selected aim to maximise return for a given level of risk. At the same time, the portfolios seek to maintain a smaller carbon footprint than the reference index, better overall ESG risk management and, in the case of the Sustainable portfolios, supporting sustainable solutions to environmental and social challenges.
“We have identified a strategy that ticks these boxes and are delighted to be working with Pictet to bring it into the portfolios.”
Dan Franklin, head of UK wholesale at Pictet Asset Management, says: “We are delighted to have been awarded this mandate and share Quilter Investors’ enthusiasm for investing in sustainable solutions. The Timber strategy is an important environmental solution, as Timber is nature’s answer to carbon capture, storage and sustainable alternatives to fossil-based materials.
“We look forward to working closely with Quilter Investors and delivering them sustainable returns for many years to come.”