Quilter WealthSelect exits impact EM fund following exclusion breach investigation
WealthSelect's sustainable range is no longer invested in the UBAM Positive Impact Emerging Market Equity fund.
The managed portfolio's sustainable range is no longer invested in the UBAM Positive Impact Emerging Market Equity fund, after third party data provider identified tobacco production, in the form of e-cigarette production, via a joint venture of a holding in the fund.
A spokesperson told Investment Week that while the firm was informed that revenue for that holding had ceased, Quilter's investigation found «there was not enough evidence to override our own stated policy for the sustainable portfolios».
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«As a multi-manager we feel it is of utmost importance that we independently monitor adherence to the objectives we have laid out to our clients and take appropriate action if necessary,» the spokesperson said.
«This can occur where a fund has different revenue threshold monitoring or exclusions to us or utilises a different ESG data provider, as widely commented on with the variation of ratings and assessments of the same corporate entities. In this instance we felt we had to remove the fund as a result.»
Stuart Clark, WealthSelect portfolio manager, said it was important that the portfolio's sustainable and responsible range «continue to deliver the dual mandate that clients come to expect, and as such it means acting where we see funds falling short».
«We act as stewards for our investors and their money and it is important we are active when we see harm where we should not,» he said.
More broadly, the portfolio's latest rebalancing also saw changes to the portfolio's responsible and sustainable ranges, including de-risking its highest risk
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