20 October 2022
Quilter Cheviot has today announced the launch of the Climate Assets Growth Fund, in addition to the already successful Climate Assets Balanced Fund.
The Climate Assets Growth Fund will focus on sustainable investment to provide clients with long-term capital growth. The new fund will have an equity allocation between 75% and 95%, compared to 60% to 75% for the Balanced fund.
Managed by Quilter Cheviot’s Head of Sustainable Investment, Claudia Quiroz, alongside Deputy Fund Manager Caroline Langley, this launch marks the next step in expanding Quilter Cheviot’s sustainable investment offering.
The Climate Assets Balanced Fund, which was recently renamed to accommodate the launch of the Climate Assets Growth Fund, launched in 2010 and has subsequently built an AUM of c.£400m. The Fund has generated 7.30% annualised returns since inception (1st March 2010) to 30th September 2022 and has outperformed the IA Mixed Investments 40-85% Shares by 46.71% over the same period. Also, the Climate Assets Balanced Fund is the only strategy that has been awarded both Morningstar five-star and ‘High’ ESG ratings from the list of 214 funds run by women in the UK.
Together with the Balanced Fund, the Climate Assets Growth Fund will focus on investment opportunities that arise from companies providing solutions to improve resilience to climate change and healthcare challenges. It will seek to invest across clean energy, food, health, resource efficiency and water as positive investment themes, while specifically avoiding companies generating revenue in controversial industries such as alcohol, armaments, fossil fuels, gambling and tobacco.
To be considered for inclusion in the Climate Assets Funds, companies must offer solutions to the global challenge of delivering ‘more with less’ for a rapidly growing population with a low carbon footprint. Currently over 70% of the revenue generated by companies held in the Climate Assets Balanced and Climate Assets Growth Funds is aligned with one or more of the UN Sustainable Development Goals.
Claudia Quiroz, head of sustainable investment at Quilter Cheviot, said:
“We are delighted to be expanding the Climate Assets strategy with the introduction of a growth fund. Witnessing the increase in investors’ awareness of climate change and speaking with financial advisers and clients alike, it is clear there is a desire for a growth fund with a sustainable investment philosophy, using the same tried and tested approach we have developed over 12 years.
“We decided to launch a fund in 2010 as we could not find a well-managed multi-asset fund with a focus on solutions to the economic and environmental challenges of climate change and demographics. As these challenges remain ever more concerning, we want to continue leverage from our investment philosophy and process which have stood the test of time, demonstrated by our 12-year track record investing in sustainability. Thus, the Climate Assets Growth Fund was a natural development.
“The Climate Assets strategy, now underpinned by our two funds, seeks to find and champion the companies that are having a positive impact across our investment themes, while providing clients with a choice of products to cater for different risk tolerances that match their responsible investment preferences.”
About the fund managers
Claudia Quiroz – Claudia has been the lead fund manager on the Climate Assets strategy since the launch of Climate Assets Balanced Fund in 2010. She has more than 20 years’ experience in sustainable, ethical and responsible investment with a background in chemical engineering.
Caroline Langley – Caroline was co-creator of the Climate Assets investment philosophy and has over 17 years of investment experience. A chartered accountant by training, Caroline also holds an MSc in environmental technology, specialising in global environmental change and policy.
Other members of the Sustainable Investment Team include Investment Manager Harry Gibbon, Sustainable Investment Specialist Toby Rowe and Investment Executive, Drew Beckley.
