ESG

The Magnus ESG models have been designed to reflect the concerns and priorities that matter most to clients today, while remaining focused on delivering strong long-term investment outcomes. We recognise that clients increasingly want investments aligned with their values, but also expect portfolios to remain diversified, resilient, and yet still provide a return. Our philosophy combines reduced exposure to certain sectors, increased allocation to positive sustainability themes, and to active engagement with companies.

Rather than fully excluding industries, our approach seeks to reduce exposure to businesses that may present elevated environmental, social, or governance risks.

This allows the models to remain diversified and flexible while addressing concerns around areas such as pornography, tobacco, and controversial weapons. We believe this measured approach avoids unnecessary investment constraints while creating portfolios with a stronger ESG profile.

Alongside this, we increase exposure to businesses and themes contributing positively to long-term sustainable outcomes. We favour companies with strong ESG characteristics, robust governance, and sustainable business models, including those involved in renewable energy, healthcare innovation, resource efficiency, and education. We believe companies that adapt successfully to long-term structural trends are often better positioned for resilient growth.

The third pillar of our philosophy is active engagement. Through stewardship, voting, and dialogue, investors can encourage improvements in areas such as climate transition planning, governance standards, labour practices, and transparency. Importantly, ESG considerations are integrated alongside a disciplined focus on portfolio construction and investment performance. We do not believe responsible investing should require clients to compromise on financial objectives or diversification.

Overall, our approach aims to provide a balanced ESG investment solution that aligns with a broad range of client values while remaining focused on sustainable long-term performance.