Discretionary investment manager Tilney has launched a sustainable managed portfolio service (MPS) into the financial adviser market.
This has been done via its Tilney for Professionals arm.
The range of portfolios were originally launched in September 2011 as a service for Tilney’s direct clients, and from 3 August, the sustainable MPS range has been made available to the financial adviser market for the first time.
Tilney wants to cater for the growing appetite from UK financial adviser community for strategies that “combine active asset allocation, rigorous fund selection and incorporate environmental, social and governance criteria”.
Imperative
Craig Wright, managing director, head of business development at Tilney for Professionals, said: “Demand for sustainable and ethical strategies has been growing exponentially in recent years as private clients, trustees and charities have been increasingly concerned about issues such as climate change, plastic pollution and standards of corporate governance.
“With amendments to Mifid II being introduced requiring ESG considerations to be a mandatory part of the suitability assessment for clients, it is imperative that financial advisers are able to meet the needs of their clients with high quality, managed solutions.”
Details
The six sustainable MPS strategies accommodate a wide range of client risk profiles: conservative, cautious, balanced, growth, adventurous and maximum growth with the guideline ceiling for equities exposure ranging from 40% through to 100%.
The range of asset classes within the portfolios includes equities, bonds, property, absolute return, commodities and cash.
Each portfolio typically invests across 15-to-20 underlying collective investments, including Oeics, unit trusts and exchange-traded funds, selected by Tilney’s central investment team.
Finances
The minimum investment for the Tilney Sustainable MPS service is £50,000 ($62,215, €55,530).
The adviser remains responsible for risk profiling their client and recommending the appropriate strategy, supported by a relationship manager at Tilney.
As an extension of its open architecture MPS service, the sustainable range has a 0.6% + VAT annual management charge, inclusive of Tilney preferred custody solutions, reporting and online application for clients.
It is available across all tax wrappers, including individual savings accounts (Isas), self-invested personal pensions (Sipps), small self-administered pension schemes (Ssass), and offshore bonds.
