After months of work we’ve launched our Ethical Emphasis investment range, for use alongside our Core proposition of customised risk-rated portfolios. The range utilises funds which put environmental, social and governance (ESG) at the centre of their investment processes in order to drive positive social change. 

Socially Responsible Investing (SRI), goes by many other names including ethical investing, ESG (Environmental, Social, Governance) investing, green investing, sustainable investing or socially conscious investing. Historically, such investing was interpreted and applied narrowly by specifically excluding certain ‘problem’ stocks such as tobacco companies and armament manufacturers (so called ‘negative screening’ techniques).

Over time SRI investing has evolved towards so called ‘positive investing’ – investing in companies with positive social, environmental and governance attributes and actively engaging with companies in order to improve their policies and practices.

Entering the ‘ethical investing’ arena is no easy task for advisers and discretionary investment managers, as investor’s preferences and opinions on just what is socially beneficial are all subtly different. However, we feel that PortfolioMetrix’s flexible portfolio construction methodology is perfect for meeting the needs of most socially conscious investors.

The funds selected for our Ethical Emphasis range focus on positive screening: using an active research function to determine the social and environmental effects of potential investments. Advisers can also choose a cheaper passive option for clients, although passive ethical investment vehicles tend to be limited to negative screening and so are ‘lighter green’ than their actively managed counterparts.

We know there’s demand for ethical focus investment vehicles and I’m delighted we have been able to put together a solution that allows clients to meet their financial objectives, whilst also being customised to meet their specific needs and requirements.

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