Sustainable Model Portfolios
Investing in a better world: six actively-managed portfolios with people, planet and profit in mind.
Actively managed
Six portfolios spanning different assets, managers and styles – but all in line with sustainable values.
Sustainability reporting
Our reporting highlights the positive impact 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.
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.
A finely-tuned balance
To help us make the right decisions with strategic asset allocations (SAA), 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.
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?
Risk mapped
The portfolios are independently risk mapped by Distribution Technology, Defaqto, Finametrica and Synaptic.
And independently rated
Platform availability
Here’s where you can access our Sustainable Model Portfolios. We don’t endorse or recommend these platforms.
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
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Fair Value Assessment report
*Ongoing Charge Figure (OCF)
The OCF is a measure of the total costs associated with managing and operating an investment portfolio. These costs include the MPS fee, management fees and additional expenses of the underlying funds but excludes any advice, platform charges, transaction fees or incidental costs. The OCF will vary on a monthly basis.
Risk considerations
Capital risk: All capital invested is at risk. You may not get back some or all of your investment. 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. 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.
Adviser tools
Sustainable investing
Sustainability is our guiding principle, both for ourselves and the companies we invest in. If you’re not paying attention to ESG, you’re missing the chance to future-proof your investment strategies.
Important information
Source of ratings: Defaqto, April 2023. Schroder Investment Solutions was named ‘Best Model Portfolio Service’ at the Professional Adviser Awards 2023 and 2022.
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.