The Evergreen Responsible Growth Model, issued by Generation Life, an investment bond specialist, has been structured as an investment option within their LifeBuilder investment bond to provide investors with tax-effective, long-term holdings in a portfolio of investments that meet sustainability objectives.

The Generation Life investment bond is also Highly Rated by Lonsec.

The Evergreen Responsible Growth Model has also scored A in Ethos ESG which scores investment products on their responsible investment ability.

It is a multi-manager portfolio, investing in a range of best-in-class investment managers. It has a diversified asset allocation, with benchmarks of 75% in growth assets and 25% in defensive assets.

Investment bonds are tax paid investments, which means that the fund manager pays tax of up to 30 per cent on fund earnings. This is different from the more common unit trust structure, where all income and capital gains are passed through to investors, who are liable for the tax.

SQM says the fund is managed using an investment process that is based on a very clearly articulated investment philosophy, which in turn is based on extensive research.

“The investment process is well structured to support the investment decisions that are required in the management of the fund,” SQM says.

The report adds “The managed fund selection process is one of the most thorough and detailed that has been observed among multi-asset, multi-manager investment managers. It takes advantage of the many years of experience the investment team has in researching investment managers and managed funds.”

The manager selection process includes consideration of a fund’s Evergreen Responsible Investment Grading (ERIG) Index score, which currently grades 670 strategies.

Evergreen Consultants Founder and CEO Angela Ashton says Evergreen is in a position to access investment opportunities that are often missed by other investment bonds, especially in the responsible investing (RI) space.

She adds: “This is the only RI multi manager product offered by Generation Life. Investment bonds are particularly useful in estate planning as they can be set up to pass directly to beneficiaries, providing them with tax-free benefits. This can be a valuable solution for long-term investors who care about their money being invested wisely, as well as doing good for themselves and future generations.”

“To have a Superior rating from SQM on top of being part of the Highly Rated investment bond structure from Generation Life is a good position to be in. We have also recently received an A rating from Ethos ESG, which further cements our Responsible Investment credentials.”

Portfolio holdings include:

• Octopus Renewable Energy Opportunities Fund, which has funded the one-million panel Darlington Point Solar Farm in New South Wales.
• NorthStar Impact Fund, which invests in companies that provide solutions to social and environmental challenges, such as social housing projects, education and health initiatives and better land management.
• Pengana WHEB Sustainable Impact Fund, which invests in companies offering solutions to a range of sustainability challenges, including cleaner energy, environmental services, and sustainable transport and water management.
• Robeco Global Developed Sustainable Enhanced Index Equity Fund, a smart beta approach to passive investing combined with high ESG scores.

Evergreen aims to generate returns of the Reserve Bank cash rate plus 3.5% a year over a seven-year period, after manager fees and tax.

The post Evergreen Responsible Growth Model fills a gap in the ESG investment market appeared first on AdviserVoice.