The Responsibly Managed Portfolios are risk profiled and aimed at financial advisers with clients eager to invest in ethical and sustainable funds.
FE’s own rating system will guide fund selection, overseen by a team of analysts. The Trojan Ethical Income and EdenTree Amity UK funds are among the first strategies chosen.
Charles Younes, FE research manager, said: “With the UK government calling for such investments to be made more widely available, as well as growing demand from millennials who are in line to receive more than $30trn (£22.5trn €25.2trn)of inheritable wealth, we believe interest in responsible investments will soar in the next decade.”
ESG screening
Only funds with a dedicated negative or positive screening mandate will be considered.
“Funds just considering these issues as part of a regular investment process will not make the shortlist,” FE said in its announcement,
Younes added: “Sustainable and ethical managers can be exposed to similar biases due to the nature of the companies in which they invest. As such, selecting managers with different themes and approaches is key to maximising diversification.
“Our portfolios include a wide range of funds – from negatively screened funds that avoid companies investing in armaments, gambling, tobacco and so on, to positively screened funds which look to invest in companies making a positive impact.”
