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Introducing the changes
On 1 July 2026 we are enhancing the objectives of the Responsible Portfolios.
These enhancements will better reflect how the portfolios are managed, improve customer understanding through clearer disclosures, and align our approach with current regulatory expectations.
The changes focus on a new formal requirement to invest in funds that demonstrate leading ESG integration and a more holistic approach to managing ESG risk.
Below we have answered the key questions you are likely to have and explain what these changes mean for you and your clients.
What is the new objective?
The WealthSelect Responsible Portfolios aim to achieve capital growth over a period of five years or more, while managing the environmental, social, and governance (ESG) risk of the portfolio by investing in funds that demonstrate leading ESG integration.
The portfolios will have exposure to a diversified range of investments in the UK and globally. At least 70% of the assets in the portfolios will be invested in funds that demonstrate leading ESG integration (tier 2 funds) or target sustainable outcomes (tier 3 funds) as classified using our responsible investment tier framework.
The portfolios are matched to a risk profile that targets a specific range of the expected annualised volatility of global equities over the next 10 years and are managed to stay within this range most of the time.
Why are these changes being made now?
By updating the objectives and disclosures, the portfolios will more clearly explain how ESG risks are assessed and managed, and provide a fuller, more meaningful picture to you and your clients.
What is the new 70% requirement?
Each WealthSelect Responsible Portfolio will be formally required to invest at least 70% of its assets in tier 2 funds (funds that demonstrate leading ESG integration) or tier 3 funds (funds that target sustainable outcomes). This is assessed using our responsible investment tier framework.
Up to 30% of a portfolio may continue to be invested in tier 1 funds, which meet Quilter’s minimum responsible investment expectations.
Importantly, this is a formalisation of existing practice rather than a change in how the portfolios are managed day to day.
Where is the commitment to invest 50% in funds that pursue explicit environmental/social targets?
As each portfolio now has the formal requirement to invest at least 70% of its assets in tier 2 funds (funds that demonstrate leading ESG integration) or tier 3 funds (funds that target sustainable outcomes) we have removed this lower threshold.
What is happening to the carbon footprint objective?
The portfolios will no longer have a standalone objective to maintain a smaller carbon footprint than the reference index, the MSCI ACWI.
Relying on single, point-in-time ESG measures, such as carbon footprint alone, can oversimplify complex risks and place too much emphasis on current emissions rather than how companies are managing wider environmental, social, and governance issues.
This does not mean that carbon risk is being deprioritised. The carbon footprint remains a relevant indicator and we will still include this metric in our reporting, but it will be one of many ESG risks considered when constructing and managing the portfolios.
How will ESG risk be managed going forward?
The portfolios will continue to manage ESG risk holistically by focusing on funds that demonstrate leading ESG integration.
Rather than applying rigid exclusions, exposure to companies with higher ESG risk will be monitored, managed, and disclosed.
Does this mean the portfolios are changing their holdings or asset allocation?
No. There are no changes to the asset allocation or the underlying investment process.
What new ESG metrics will you and your clients see?
The new reporting will include a broader range of ESG metrics alongside the carbon footprint, including weighted average carbon intensity, exposure to higher (manufacture of controversial weapons, manufacture of tobacco products, thermal coal production, or unconventional oil and gas extraction), UN Global Compact compliance, and ESG controversies.
These new ESG metrics will be monitored and measured from 1 July 2026, and your clients will first see these in their Q3 2026 WealthSelect quarterly reports in October.
How do these changes benefit your clients?
Clients benefit from clearer objectives, improved understanding of ESG risks, and more transparent, informative reporting, while the portfolios continue to focus on long‑term financial outcomes.
What does this mean for conversations with your clients?
The enhancements make it easier to explain how responsible investment considerations are built into the portfolios, why ESG risk is about more than a single metric, and how Quilter balances environmental, social, and governance factors in a practical, investment‑led way.
