Our sustainable portfolios
Now more than ever, ethical investing is becoming a priority. With issues around climate change and global warming becoming more and more prominent in the press, we have seen a peak in clients asking for Ethical portfolios.
We therefore have put together our own ‘sustainable’ portfolio of funds.
What is a sustainable portfolio?
The concept behind the portfolios is ‘opt in’ for positive choices (such as investing in companies that have a good Environmental, Social and Governance (ESG) policy) rather than ‘opting out’ of negative criteria (for example, saying no investments in armaments).
The portfolios follow the same asset allocation and risk profiling as our standard model portfolios, with assets in Fixed Interest, UK equities, Developed Markets and Emerging Markets.
At launch on 1st April 2020, we have not found a suitable property fund to fulfil this section of the asset allocation. We have therefore elected to add this percentage of the normal asset allocation into the Fixed Interest sector (5% as at 1st April 2020). This will of course be reviewed and when a suitable property fund is found, we will look to allocate the correct percentage back into the property asset class.
We elected to add this proportion to the Fixed Interest asset class as we view Property funds as being relatively low-risk. Therefore, we felt that choosing the lower risk end of the asset allocation spectrum would be more suited to fill the void of the property fund.