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Foster Denovo launches discretionary Climate Impact Portfolio

ESG investingFoster Denovo (FD) has launched the FD Climate Impact Sustainable Dynamic Portfolio, targeted at clients seeking specialised exposure to themes such as electrification, energy efficiency and alternative energy sources.

The new portfolio will be able to be integrated within existing FD active and passive sustainable dynamic portfolio (SDPs) solutions.

The launch is in response to increasing client demand for a climate-focused, thematic portfolio solution that can sit alongside Foster Denovo’s broader ESG and sustainable strategies.

The Climate Impact SDP will be managed on a discretionary basis, comprising mainly best-in-class fund managers, and will hold primarily actively-managed funds, combined with a small level of passive exposure.

Roger Brosch, CEO of financial advisory business Foster Denovo, said: “We have seen a plethora of new sustainable products come to market, many of which appear to just be the rebadging of previous offerings."

“It was, therefore, essential for us to develop a discretionary portfolio that would allow us to harness the best-in-class thematic managers, while setting strict impact and return objectives best suited to our clients’ needs. Also key was control to review and make changes in an ever-evolving landscape of climate-related opportunities and challenges,” he added. 

The firm launched a range of SDPs last year. The range, which is also managed on a discretionary basis, focuses on clients’ financial path and risk profile, while taking into consideration clear sustainable and ESG criteria.

The new portfolio will be subject to the same risk process that underpin the entire SDP range, including “rigorous” fund filters and ongoing suitability and risk assessments, led by Foster Denovo’s head of investment research, Declan McAndrew, alongside independent external expertise from sustainable and impact investing fund research specialists Worthstone.

Declan McAndrew, head of investment research, said: “Part of our plan for the SDP range was to offer clients dedicated thematic impact vehicles which can deliver on specific ESG related objectives.

“These impact vehicles can be used as satellite exposure and dovetail with the existing ranges. We want to provide clients with access to solutions that can cater to wherever they sit throughout the spectrum of capital – from ESG risk mitigation all the way through to impact investing." 

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