EQ Investors has partnered with Nordea Asset Management to launch two multi-asset funds.
The Nordea EQ Future Leaders Multi-Asset Balanced fund and the Nordea EQ Future Leaders Multi-Asset Adventurous fund give advisers access to EQ Future Leaders – EQ’s responsible, low-cost strategy – in a single, risk-rated strategy.
EQ designed the mandates and its investment team acts as the strategic adviser while Nordea will oversee the day-to-day running of the funds.
While EQ will set asset allocation, monitor the funds’ responsible investment characteristics and report to advisers and their clients, Nordea will manage operations, liquidity and regulatory governance.
Nordea’s BetaPlus Enhanced investment methodology will also be a key part of the funds’ value proposition.
Sitting alongside EQ’s £2bn model portfolio service range, the funds aim to deliver long-term capital growth at low cost while investing responsibly, using the same ESG-screened, sustainable investment methodology that underpins EQ’s Future Leaders portfolios.
The balanced fund will target a 60% equity exposure and the adventurous fund will aim for 80% equity exposure.
The funds have a founder share class and a standard share class. Early investors can access the founder share class, which carries an ongoing charges figure of 0.35% for both funds. Both funds are available on platforms for ISAs, SIPPs, GIAs and offshore bonds.
Sophie Kennedy, joint CEO at EQ Investors, said: “There’s a real gap in this market. Too many responsible investment strategies fall short of what clients would reasonably expect, and we want to set a higher standard.
“We’ve spent more than a decade building our approach to sustainable and responsible investing, and these funds bring that experience to advisers in a single holding.”
David Crawford, head of Nordea Asset Management UK, added: “We’re thrilled to be working with EQ Investors and see it as a wonderful opportunity to partner with a like-minded firm that is leading the way in sustainable investing.
“We’ve seen huge demand for low-cost sustainable portfolios that deliver strong, consistent risk-adjusted returns against traditional benchmarks, and we believe this partnership brings something new to the market.”
