The Evelyn Partners Sustainable managed portfolio service (MPS) team has added a new position in the FTGF ClearBridge US Equity Sustainability Leaders fund.
The fund has been managed by Mary Jane McQuillen and Derek Deutsch since 2015. Its three largest holdings are Microsoft Corp (8.5% weighting), Apple (5.08%) and JPMorgan Chase & Co (3.84%).
The rationale for the move is to diversify its US equity allocation as part of its latest re-balance.
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The team slightly reduced exposure to Brown US Sustainable Growth to fund the new position, as well as making ‘minor trims’ to Liontrust UK Ethical, Atlas Global Infrastructure and, in the higher risk models, the specialist RobecoSAM Smart Materials fund.
Overall equity exposure was decreased at the lowest end of the risk spectrum and slightly increased in other models. The MPS fixed income weighting was increased in all models except the highest risk profile, funded by a reduction in alternatives.
Within alternatives, the team reduced exposure to its two absolute return funds in favour of fixed income, where they see ‘attractive opportunities on a relative basis’.
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Philippa Douglas (pictured), assistant manager, commented: “Initiating a position in the FTGF Clearbridge US Equity Sustainability Leaders fund offers exposure to quality large-cap US businesses, complementing our existing allocation to Brown US Sustainable Growth with a broader and more balanced style.
“This fund seeks capital growth through investing in high quality US companies that meet its ‘ESG Sustainability Leader’ criteria. The managers consider diversification across multiple industries and the market-cap spectrum as key and seek to emphasise stock selection while minimising factor exposure.
“Typical companies which meet the criteria offer products and services that address global challenges such as climate change, loss of biodiversity, health and wellbeing, and also operate in a responsible manner.”
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