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FUND FACTS What are the portfolios?
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INVESTMENT PROCESS How do we approach risk management?
Sustainability criteria What do the funds invest in?
Standout characteristics What sets the funds apart?
Meet the manager
Contact our sales team
Learn more about the funds
Rathbone Greenbank Multi-Asset Portfolios
Terms & Conditions
Will Mcintosh-Whyte Fund Manager
BIO
Will is responsible for managing the Rathbone Greenbank Multi-Asset Portfolio funds and Rathbone Multi-Asset Portfolio funds. He joined the charities team at Rathbones in 2007, and was appointed as an investment manager in 2011, running institutional multi-asset mandates. He has been with the multi-asset team since 2015. Will graduated from the University of Manchester Institute of Science and Technology with a BSc Hons in Management, and is a CFA charterholder.
he needs of investors are evolving. Consistent returns with low volatility are no longer the only priorities, as environmental and social concerns are increasingly coming to the fore. The Rathbone Greenbank Multi-Asset Portfolios are a range of four sustainable risk rated funds created to meet the needs of a wide spectrum of
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investors who want more from their investments. Using our proprietary LED (Liquidity assets, Equity-type risk and Diversifiers) investment framework, the funds aim to provide attractive risk-adjusted returns whilst targeting companies and entities that support sustainable development and therefore benefit people and planet. For inclusion in the funds, all underlying assets must meet clearly defined sustainability criteria and undergo an in-depth review process.
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Any views and opinions are those of the investment manager, and coverage of any assets held must be taken in context of the constitution of the fund and in no way reflect an investment recommendation. This document is published by Rathbone Unit Trust Management and does not constitute a solicitation, nor a personal recommendation for the purchase or sale of any investment; investments or investment services referred to may not be suitable for all investors. No consideration has been given to the particular investment objectives, financial situations or particular needs of any recipient. The price or value of investments, and the income derived from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a reliable indicator of future results. Tax regimes, bases and reliefs may change in the future. Rathbone Investment Management will not, by virtue of distribution of this content, be responsible to any other person for providing the protections afforded to customers or for advising on any investment. Rathbones and Rathbone Greenbank Investments are trading names of Rathbone Investment Management Limited. Rathbone Investment Management Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered office: Port of Liverpool Building, Pier Head, Liverpool L3 1NW. Registered in England No. 01448919 Rathbone Unit Trust Management Limited (known as Rathbone Funds) is a subsidiary of Rathbones and is authorised and regulated by the Financial Conduct Authority. Registered office: 8 Finsbury Circus, London EC2M 7AZ. Registered in England No. 02376568. Rathbone Investment Management Limited is a wholly owned subsidiary of Rathbones Group Plc. We are covered by the Financial Services Compensation Scheme. The FSCS can pay compensation to investors if a bank is unable to meet its financial obligations. For further information (including the amounts covered and the eligibility to claim) please refer to the FSCS website fscs.org.uk or call020 7892 7300 or 0800 678 1100. Unless otherwise stated, the information in this document was valid as at 15 January 2022. Not all the services and investments described are regulated by the Financial Conduct Authority (FCA). Rathbones Group Plc. is independently owned, is the sole shareholder in each of its subsidiary businesses and is listed on the London Stock Exchange. Head office: 8 Finsbury Circus, London EC2M 7AZ The information and opinions expressed herein are considered valid at publication, but are subject to change without notice and their accuracy and completeness cannot be guaranteed. No part of this document may be reproduced in any manner without prior permission. © 2022 Rathbones Group Plc.
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Fund Facts
What are the portfolios?
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Source: Rathbone Greenbank Multi-Asset Portfolios Sustainability process brochure.
Coombs believes the collaboration between Rathbones and Greenbank places the firm at the forefront of sustainable multi-asset investing. ‘It creates a joint approach to analysing sustainability performance and engaging with companies on Environmental, Social and Governance (ESG) issues,’ he said. Greenbank, which has been among the leaders of the sustainable investment industry since 1992, launched one of the UK’s first bespoke ethical portfolio services and has been pushing for improvements in corporate sustainability ever since. ‘Greenbank has one of the most experienced teams in the responsible investment field,’ McIntosh-Whyte said. ‘They have been pioneers in driving change in business and society through ethical and responsible investment for well over 20 years. It’s great to have them on board.’
Sustainable investment pioneer
1992: Original Greenbank team members develop one of the UK's first tailored ethical portfolio services
Team milestones
Shareholders' rights
Growing the market
Group support
Leading on engagement
Greenbank’s history
Greenbank are one of the most experienced teams in the responsible investment field and have been pioneers in driving change in business and society throough ethical and responsible investment for well over 20 years.
2002: Rathbone Ethical Bond Fund launched
2012: Joined Aiming for A (now Climate Action 100+)
2006: Joined PRI Engagement Clearinghouse (now Collaboration Platform)
2021: Launch of Rathbone Greenbank Multi-Asset Portfolios
'Our goal is to invest in companies and entities that are aligned with the UN-backed Sustainable Development Goals (SDGs). We follow a comprehensive approach to sustainability by requiring all asset classes we hold to meet our sustainability criteria and aim to be as transparent as possible about the asset classes and underlying companies we hold.’ Will McIntosh-Whyte, fund manager The Rathbone Greenbank Multi-Asset Portfolios are a suite of four sustainable, genuinely diversified multi-asset funds, which support sustainable development across areas such as energy and climate, health and wellbeing and resource efficiency.
They represent a collaboration between Rathbones Unit Trust Management (known as Rathbone Funds) and Rathbone Greenbank (Greenbank), Rathbones’ specialist ethical, sustainable and impact investment arm. The day-to-day management of the funds is the remit of Rathbone Funds, utilising a well-established investment process with a demonstrable track record of over 10 years. Greenbank’s research team provides the portfolios with independent analysis into the sustainability credentials of all companies and entities in which they invest. Crucially, Greenbank can veto investments that don’t meet the strategies’ sustainability criteria and also monitor fund holdings for their ongoing suitability. Launched in March 2021, the funds are managed by Will McIntosh-Whyte and David Coombs (head of multi-asset investing), who also successfully run Rathbones’ existing multi-asset portfolio range.
Source: Rathbone Greenbank Multi-Asset Portfolios Investor brochure.
Rathbone Greenbank Dynamic Growth Portfolio Rathbone Greenbank Strategic Growth Portfolio Rathbone Greenbank Defensive Growth Portfolio Rathbone Greenbank Total Return Portfolio
Inflation +4% (UK CPI) Inflation +3% (UK CPI) Inflation +2% (UK CPI) Bank of England base rate +2%
Five sixths equity risk Two thirds equity risk One half equity risk One third equity risk
5 years + 5 years + 5 years + 3 years +
HIGH RISK
MEDIUM RISK
LOW RISK
Fund
Risk
Return
Time horizon
Risk rating
6
5
4
3
£
2009: Signatory to the Principals for Responsible Investment (PRI)
2016: Co-filed resolution on carbon asset risk resillience reporting at Anglo American, Rio Tinto & Glancore
Rathbone Greenbank Dynamic Growth Portfolio
Inflation +4% (UK CPI)
Five sixths equity risk
5 years +
Rathbone Greenbank Defensive Growth Portfolio
Inflation +2% (UK CPI)
One half equity risk
How do we approach risk management?
INVESTMENT PROCESS
The Rathbone Greenbank Multi-Asset Portfolios (RGMAPs) follow a LED (Liquidity assets, Equity-type risk and Diversifiers) framework that divides asset classes into the three categories according to their behaviour to enable better risk management:
Bespoke framework
Flexible approach
The portfolios benefit from a certain level of flexibility, which allows for a global and relatively unconstrained approach. ‘It enables us to act opportunistically and take advantage of market areas that can be harder to access. Plus, the funds are directly invested, so we can act swiftly and take advantage of market dislocations,’ McIntosh-Whyte explained. This flexibility gives us the ability to identify genuine diversifiers, which can be difficult to find. McIntosh-Whyte and his team work with various counterparties to take advantage of mispricings in the market which can help deliver uncorrelated returns. ‘For example, you can find that index volatility is overpriced and single stock volatility underpriced. If you pair them off against each other, you can generate a return that way,’ he explained.
The funds are directly invested, so we can act swiftly and take advantage of market dislocations.
Will McIntosh-Whyte, Fund Manager
Robust risk management tools
The funds use a wide variety of means to manage risk and drawdowns, including structured products and currency hedging. ‘Investing in global equities and bonds as a Sterling investor can come with currency risks,’ McIntosh-Whyte said. ‘However, our ability to currency hedge ensures we are able to choose the best companies globally and only take the currency exposures we want. For example, we may hedge out our Euro exposure but retain exposure to the Yen, which can act as a risk-off tool as it often rallies in difficult markets.’
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‘Fixed income, equities and alternatives can behave in different ways in normal times, but can correlate during periods of market stress. We want to make sure that assets are categorised by their liquidity and correlation to equities during stressed markets to ensure we are protecting our portfolios adequately during these periods,’ portfolio manager Will McIntosh-Whyte said.
What do the funds invest in?
Sustainability criteria
Fundamentally, the funds invest in companies and entities which are aligned to sustainable development. To do this in practice, all assets in the funds are scrutinised against pre-determined sustainability criteria agreed between the fund managers and the team at Greenbank, who are the final arbiter on whether an investment is eligible for inclusion within the funds. We use the same set of criteria when analysing companies, including shares, real-estate investment trusts, corporate bonds, and structured product counterparties. This criteria has been designed to exclude entities whose activities or behaviours hinder sustainable development and identify those that are delivering positive benefits for society and the environment.
The funds use a negative screening process to avoid investing in companies that create significant negative impacts that are considered to be incompatible with sustainable development. For example, businesses that conduct animal testing without an appropriate animal welfare violations policy, operate oil and gas fields or are involved in serious or repeated breaches of international human rights standards, including direct use of child, forced or bonded labour are automatically excluded.
Negative screening
But that’s just one aspect. Companies must also demonstrate leading business practices and policies (operational alignment) and/or allocate capital towards sustainable development (activity alignment). To identify this, Greenbank has mapped the UN-backed Sustainable Development Goals (SDGs) to a set of eight sustainable development categories and a number of underlying sub-categories. Those categories ultimately align with the same ambitions as the SDGs but focus on the areas that are most relevant to companies and investors. ‘We use them to determine how successful individual companies are at translating aspirations into tangible results,’ McIntosh-Whyte explained. ‘As sustainable investors, we engage with, and invest in, businesses that are making positive contributions in areas that fall within one of our eight sustainable development categories. These can be in areas such as renewable and low carbon energy, water efficiency and affordable housing’
Positive operational and activity alignment
Importantly, even asset classes which can be more complex to apply sustainability criteria to have been considered. The approach applied for government bonds and commodities, although customised, is consistent in ensuring all investments in the portfolios are aligned with sustainable development. For example, governments are not automatically deemed to be eligible for the funds but instead must meet at least three out of four sustainability criteria related to civil and political freedom, corruption, military spending, and climate change.
Sustainable development categories
What sets the funds apart?
Standout characteristics
Several aspects set the Rathbone Greenbank Multi-Asset Portfolios (RGMAPs) apart from peer strategies, not least because the collaboration between Rathbone Funds and Greenbank, combines focused risk management with robust sustainability analysis. Greenbank’s experience in analysing sustainability credentials is crucial in that regard. After all, the firm has offered a dedicated responsible investment service since 1997. Based on a proprietary database of in-depth profiles on companies and countries, Greenbank’s research team assesses all assets in the funds against predetermined sustainability criteria. To do this, they use a variety of sources including reports and publications from companies themselves, MSCI ESG manager, industry groups, non-governmental organisations, sell-side analysts, external research bodies and specialist responsible investment publications. By using a breadth of resources, and their own expertise and experience, Greenbank are able to conduct a more in-depth assessment of every company they screen and arrive at a balanced view of their performance rather than relying on third party data providers alone. ‘The team is passionate about sustainability issues and placing the principles of its clients and partners at the forefront of everything it does,’ Coombs said.
Expertise
ESG-risk integration Conducting in-depth investment research to ensure we only invest in companies with robust, long-term business models who are managing their ESG risks appropriately.
Corporate stewardship Engaging in dialogue with companies through engagement and voting to ensure they continue to align with our sustainability criteria.
Negative screening Avoiding investments in companies which are incompatible with sustainable development.
Postive alignment analysis Aligning investments to our eight sustainable development categories which map to the SDGs.
It’s also the extensive risk management process that sets the funds apart. By diversifying across asset classes and making the most of a variety of risk management tools, Coombs and McIntosh-Whyte aim to protect investors against avoidable losses and extreme volatility spikes.
Risk management
The jargon surrounding sustainable investing can make it hard for clients to get the full picture. That’s why Coombs and McIntosh-Whyte aim to be as transparent as possible about the asset classes and underlying companies they hold. They clearly define what they mean by sustainable investing and outline the criteria specific asset classes must meet to be included in the funds. The holdings of all the funds are published monthly on rathbonefunds.com, and twice a year, the team publish a case study brochure, giving clients a clear look-through into all equities, corporate bonds and government bonds held in the Rathbone Greenbank portfolios, as well as a selection of case studies across asset classes and sustainable categories. ‘It’s important for us to provide our clients with comfort around the robustness of our sustainability process. The case studies provide clarity on how the companies and entities we hold meet our sustainability criteria and why we think they have a strong investment case’, McIntosh-Whyte explained.
Clarity and transparency
Multi-asset funds that follow a sustainable investment process are more complicated than single-asset strategies, but Coombs and McIntosh-Whyte believe it’s worth the extra effort to be able to construct genuinely sustainable portfolios. ‘Everything has to meet our sustainability criteria,’ McIntosh-Whyte said. ‘We are not interested in window dressing but want to make sure that the portfolios are aligned with our principles across asset classes.’
Consistency
A force for good Companies must display leading or well-developed business practices and policies, and / or allocate capital towards them in a way that supports sustainable development.
Doing no harm Companies in the portfolio must pass through strict screening criteria, excluding organisations whose activities or operating practices hinder sustainable development.
Durable franchises Investing in quality companies that have strong business models, robust risk management, sound financial metrics and an ability to evolve and remain relevant for the long term.
Corporate culture Only investing in companies that have good corporate governance, are managed in the interest of shareholders and stakeholders, and treat their employees well.
Responsible governments Only lending to governments that respect human rights and civil liberties, are driving towards a greener economy and provide a range of public services.
Rathbone Greenbank Multi-Asset Portfolios sustainable investing...