Quilter Investors has launched a timber strategy, run by Pictet Asset Management, for investors that use its WealthSelect portfolios.
The mandate will focus on companies supporting sustainable forestry and producing wood-based materials. This means companies will ensure trees are replanted, nurtured and allowed to re-grow and capture carbon dioxide, whilst seeking to maintain biodiversity.
It will exclude companies that have exposure above a certain threshold to activities that have negative impacts on the environment or society, which includes avoiding investments in countries where forest legislation is weak or not enforced.
Stuart Clark, portfolio manager of Quilter’s WealthSelect, said: “The timber industry has the potential to touch upon many areas where tackling environmental challenges is becoming an integral focus, be that forest management, packaging solutions or the construction industry.
“When launching the new WealthSelect Responsible and Sustainable portfolios we wanted to ensure the funds selected aim to maximise return for a given level of risk. At the same time, the portfolios seek to maintain a smaller carbon footprint than the reference index, better overall ESG risk management and, in the case of the Sustainable portfolios, supporting sustainable solutions to environmental and social challenges. The strategy ticks these boxes and we are delighted to be working with Pictet to bring it into the portfolios.”