Sustainable Model Portfolios
Investing in a better world: six actively-managed portfolios with people and planet in mind.
Actively investing in the future
Six portfolios spanning different assets, managers and styles – but all in line with sustainable values.
Sustainability reporting
Our reporting highlights the costs and benefits that your clients’ investments have on people and planet.
A focus on cost
Our Ongoing Charge Figure (OCF) includes our model portfolio fee of just 0.15%, without VAT.
A wide range, a clear goal
From green funds to impact investing, our sustainable model portfolios give your clients exposure to a diverse range of purposeful investments – multi-asset, multi-manager, multi-styled.
At the same time, certain funds in the portfolios also screen out investments like fossil fuels, weapons and tobacco.
Investing for a better world
Watch Ryan Paterson, Portfolio Manager introduce the Sustainable Portfolios.
These portfolios appeal to investors who want to leave a positive mark on the world while meeting their financial goals.”
Chief Investment Officer, Schroder Investment Solutions
The three pillars of investing
We need to go further than the classic ‘risk and return’ paradigm when weighing up an investment. Impact is the third pillar that helps us uncover an asset’s real potential – and this approach helps us achieve your clients’ outcomes.
Finding leading, sustainability-focused managers
We pool knowledge from across Schroders to pinpoint the best active managers with defined sustainability or impact goals. On top of that, we look for:
- a repeatable investment philosophy
- a sound risk management process
- a strong and incentivised investment team
- a record of consistent outperformance.
This means your clients get diversified, multi-asset portfolios spanning different risk levels and investment styles – but all with sustainable goals in mind.
Here’s how we pick sustainable investment funds
We narrow down the options based on these criteria:
- We start by looking through all the funds available in the UK
- We assess them quantitively: on performance, risk, asset allocation
- We assess them qualitatively: on their team, philosophy, processes
- We take a firm-wide look at their sustainability credentials:
- What does their thought leadership say on the topic?
- How do their voting records look in the annual report?
- Do they have a sustainable investment policy?
- We assess them at a fund level:
- What are the fund’s objectives and goals?
- What’s the investment style and process?
- How does this measure up to their peers?
A finely-tuned balance
To help us make the right decisions with strategic asset allocations, our extensive asset class research forms the base of our investment philosophy. By understanding how assets typically behave over time, we can build portfolios that maximise returns for each level of risk.
There is a choice of six portfolios. At one end is Portfolio 3, which is designed to be more defensive with a higher weight to assets such as bonds and cash. At the other end there is Portfolio 8, which is designed to deliver longer-term returns through a higher holding in growth assets like equities. Each of the portfolios in the range takes a different level of risk, which means you can choose the one that best meets your clients' needs.
An illustration of how our strategic asset allocation may look is below.
Risk mapped
The portfolios are independently risk mapped by Distribution Technology, Defaqto and Synaptic.
And independently rated
Source of ratings: Defaqto, February 2024
Source: Dynamic Planner as at February 2024. The Premium Solution rating has been awarded to Sustainable Portfolio 3.
Platform availability
Here’s where you can access our Sustainable Model Portfolios. We don’t endorse or recommend these platforms.
Literature
What is active ownership?
Active ownership at Schroders means engaging with companies and issuers and our assets to encourage responsible behaviour. By holding management to account we aim to strengthen the long term value of our investments.
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Fair Value Assessment report
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Risk considerations
Counterparty risk: The portfolios may have contractual agreements with counterparties. If a counterparty is unable to fulfil their obligations, the sum that they owe to the portfolios may be lost in part or in whole. Credit risk: A decline in the financial health of an issuer could cause the value of the instruments it issues, such as equities or bonds, to fall or become worthless. Currency risk: The fund may lose value as a result of movements in foreign exchange rates, otherwise known as currency rates. Derivatives risk: Derivatives, which are financial instruments deriving their value from an underlying asset, may be used to manage the portfolio efficiently. The portfolio may also materially invest in derivatives including using short selling and leverage techniques with the aim of making a return. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund. Equity risk: Equity prices fluctuate daily, based on many factors including general, economic, industry or company news. High yield bond risk: High yield bonds (normally lower rated or unrated) generally carry greater market, credit and liquidity risk meaning greater uncertainty of returns. Interest rate risk: The portfolios may lose value as a direct result of interest rate changes. Leverage risk: The portfolios use derivatives for leverage, which makes them more sensitive to certain market or interest rate movements and may cause above-average volatility and risk of loss. Liquidity risk: In difficult market conditions, the fund may not be able to sell a security for full value or at all. This could affect performance and could cause the fund to defer or suspend redemptions of its shares, meaning investors may not be able to have immediate access to their holdings. Money market & deposits risk: A failure of a deposit institution or an issuer of a money market instrument could have a negative impact on the performance of the portfolios. Negative yields risk: If interest rates are very low or negative, this may have a negative impact on the performance of the portfolios. Performance risk: Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve.
Important information
Schroder Investment Solutions is the trading name for the following products and services: the Schroder Blended Portfolios, the Schroder Global Multi-Asset Portfolios, the Schroder Managed Defensive Fund, the Schroder Income Portfolio, the Schroder Active Portfolios, the Schroder Strategic Index Portfolios and the Schroder Sustainable Portfolios. The Schroder Blended Portfolios, the Schroder Global Multi-Asset Portfolios, the Schroder Managed Defensive Fund and the Schroder Income Portfolio are provided by Schroder Unit Trusts Limited, 1 London Wall Place, London EC2Y 5AU. Registration No 4191730 England. Authorised and regulated by the Financial Conduct Authority. The Schroder Active Portfolios, the Schroder Strategic Index Portfolios and the Schroder Sustainable Portfolios are provided by Schroder & Co. Limited. Registered office at 1 London Wall Place, London EC2Y 5AU. Registered number 2280926 England. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registration No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.