Stonehage Fleming Investment Management, the investment division of the international Family Office, has launched its Global Sustainable Investment Portfolios (“GSIP”).

Stonehage IM currently manage £7.4 billion in mainstream multi-asset portfolios. This new range will use the firm’s multi-asset capabilities, with the same investment and performance objectives, but socially responsible objectives will also be applied.

Stonehage Fleming construct portfolios by selecting funds managed by managers from across the industry, blending their skills to meet a variety of risk-return objectives.

The overlap in funds between the new range and the firm’s existing portfolios is very low according to Stonehage as the fund managers selected will be have to take factors such as corporate governance into account as well as impact methodologies.

The sustainable portfolios will be focused on equities, fixed income, alternatives and cash. The headline asset allocation and the risk-adjusted targets will be very similar to the mainstream portfolios.

Graham Wainer, Chief Executive Officer and Head of Investments at Stonehage Fleming Investment Management, said: “Equity investments will constitute the largest position in GSIP (Global Sustainable Investment Portfolios), but we are also excited by the opportunities within fixed income, which has been largely overlooked by ESG investors to date. Bond investors have longer time horizons than their equity peers, and more nuanced relationships with management teams and, critically, with governments. This will be an important asset class for GSIP.”