Nordea and EQ Investors launch multi-asset funds with 10 exclusions

EQ Investors and Nordea Asset Management launched two multi-asset funds on Nov. 12 with 60% and 80% equity allocations, both excluding 10 business activities including arms and fossil fuel extraction.

The Nordea EQ Future Leaders Multi-Asset Balanced Fund targets 60% equity and the Adventurous Fund targets 80%. EQ, a UK investment manager, acts as strategic adviser, setting asset allocation, monitoring the funds' responsible-investment characteristics and reporting to financial advisers and their clients. Nordea, the Nordic asset manager, handles day-to-day operations, including liquidity and regulatory governance. It uses its BetaPlus Enhanced methodology, which combines elements of index investing and active stock selection, according to ESG Today.

For UK advisers the pair offers one holding at two risk levels, with a published exclusion list and responsible-investment reporting handled by EQ rather than assembled in-house. The ongoing charges were not disclosed. The firms describe the funds as low-cost. The 20-point gap in equity between the two funds is the only stated difference between them.

Ten business activities are excluded, among them arms, fossil fuel extraction, tobacco and gambling, alongside companies with low ESG ratings or those that violate international norms. The screen follows the sustainable investment strategy behind EQ's existing Future Leaders portfolios, and specific exclusion thresholds apply across all funds and asset classes. On the equity side both funds target a higher average ESG score and a lower carbon footprint than the MSCI All Country World Index.