Heartwood: Proof that sustainable portfolios outperform

The group's sustainable portfolios out performed its standard equivalents over three years

Heartwood Investment Management has released performance data, showing its sustainable balanced and sustainable growth portfolios outperform the company’s core strategies.

At the beginning of May, the fund group published the three year performance track record of its Sustainable Balanced and Sustainable Growth models, alongside that of its Balanced and Growth multi-asset strategies for the three years to 31 March 2019.

On a total return basis, the Sustainable Balanced model returned 23.1% compared to 20.6% for the company’s standard Balanced model over the period. The company’s Sustainable Growth model, meanwhile, returned 30%, compared to the standard Growth model, which delivered 28%. All returns were net of ongoing charges.

Source: Heartwood Investment Management

“Sustainable investors stand to gain twice over,” explained Matthew Toms, an investment manager at Heartwood. “First, through robust investment returns and second through the better world they help to create for their own and future generations.”

Comments accompanying Heartwood’s data said that the performance supports its “high conviction” in the credentials of its sustainable approach. In its analysis of the sustainable sector more broadly, the company said that there was still scope for improvement in terms of investor choice, but said that the movement was now “expanding throughout the industry”.

“As we increasingly adopt more sustainable behaviours in our everyday life, choosing to invest our capital sustainably is the logical next step,” added Ben Matthews, an investment manager at Heartwood.

The company said that investor appetite for sustainable passive investment products would hasten the adoption of sustainable products. The company said that such products allows it to replicate the cost structure of its original multi-asst fund range within its sustainable strategies.