Russell Investments has added three new options to its range of sustainable managed portfolios following growing adviser demand for sustainable investment products.
The new options include conservative, diversified 50 and high growth, paralleling the firm’s core range of multi-asset managed portfolios.
This will enable financial advisers to uphold alignment with clients’ values relating to sustainability and access the advantages of a managed account structure, for all levels of risk appetite.
According to Neil Rogan, Australian head of adviser and intermediary solutions at Russell Investments, the expanded suite reflects the broader shift towards responsible investing.
“Demand for sustainable investment solutions continues to grow among advisers and their clients.
“By broadening the investment options available through our sustainable managed portfolios, Russell Investments is catering to those investors and advisers who wish to invest according to their values,” he commented.
Both retail and wholesale investors will gain access to leading investment managers across the globe as well as strategies which seek to create a positive sustainable outcome.
Specifically, the sustainable managed portfolios are constructed to target lower carbon emissions and enhanced ESG outcomes in comparison to the relevant benchmark.
Exposure to listed securities, managed funds and exchange-traded funds (ETFs) are blended on the portfolios to meet investment and sustainability objectives.
The new options are accessible across a range of investment platforms, and the firm will also make the core range of multi-asset managed portfolios available on other platforms later this year.
Amid growing discussions surrounding ESG, portfolio managers have encouraged advisers to deliberately check whether a sustainable fund properly aligns with the client’s values.
“Often there is an expectation gap between what the end client wants and what the fund holds,” said Damian Cottier, portfolio manager of the Perennial Better Future fund.
Russell Investments manages over $55 billion in ESG assets globally and has voiced plans to further expand its sustainable investing offering across a wide range of categories, such as ETFs.
As of December 2022, the global manager had some $407 billion in assets under management throughout 31 countries. The firm has 16 offices around the world, including New York, London, Tokyo and Shanghai.
