Wealth firm Brewin Dolphin will roll out a managed portfolio service (MPS) for IFAs which will be aligned to sustainability principles.
The firm said the range will comprise of five model portfolios designed to maximise returns from income and capital growth.
The portfolios will be made up of funds that exclude exposure to “controversial sectors” and are invested in companies that have a positive social or environmental impact.
Such funds will go through a three-stage selection process, including:
- Exclusion: not invested in companies involved in tobacco, weapons, thermal coal, gambling, and adult entertainment;
- ESG leaders: funds that set industry standards in integrating ESG factors into investment decisions and stewardship activities; and,
- Impactful companies: funds invested in firms that positively and measurably contribute to social and environmental challenges.
The five portfolios – called Income, Income Higher Equity, Balanced, Growth, and Global Equity – will be rebalanced each month and will be mapped to all the main risk profilers, Brewin said.
The DFM charge will be the same as the current MPS models at 0.30% with an estimated total charge of between 0.54% and 0.76%.
At launch, the Sustainable MPS will be available on several platforms including 7IM, Aegon ARC, The Aegon Platform, AJ Bell, Aviva, Hubwise, Novia, and Standard Life Wrap.
Evolving client needs
Robin Beer, chief executive of Brewin Dolphin, said: “We are proud of our approach to responsible investment, based on ESG integration and active ownership, which underpins our existing MPS product.
“However, we realise that clients’ needs are always evolving. Sustainable MPS meets the needs of IFAs’ clients that want more – by excluding harmful sectors and by investing in sustainable funds and companies which contribute positively to society and the environment.”
Tom Blathwayt, head of sustainability at Brewin Dolphin, said: “We believe it is important to measure and monitor the impact of a sustainable portfolio given the global challenges we all face. We also want to assess our objective of investing in companies and funds that have a positive societal or environmental impact.
“We believe that transparency is really important and have decided to use a third party, MSCI, to provide an independent assessment of the ESG risk, carbon intensity and SDG alignment of our portfolios.”
