Elston Consulting has unveiled a suite of sustainable model portfolios.
All five of the risk-rated funds are 100% compliant with the FCA’s sustainability disclosure requirements (SDR).
The multi-asset funds are run by platform-based MPS provider Elston Portfolio Management and have an average ongoing charges fee of 0.7%.
Currently the SDR only applies to individual funds, but Elston is taking a proactive stance, the firm said. The final regulatory decisions regarding the application of the SDR to MPS providers will form part of the broader review into the MPS market.
Henry Cobbe, head of research at Elston Consulting, said: “The FCA is moving in the right direction in its efforts to mitigate risk of greenwashing in the ESG investment space, with the UK SDR framework being a pioneering step.
“In the absence of finalised guidance for defining what constitutes a sustainable model portfolio, our aim is both to drive up standards and help our adviser clients avoid any risk of accidental greenwashing by focusing entirely on SDR-compliant funds.”
