InvestmentsOct 3 2014

Growing adviser demand prompts Tatton ethical launch

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Discretionary fund manager Tatton Investment Management has launched an ethically focused portfolio service.

The company, headed by chief executive Lothar Mentel, said the Managed Ethical Portfolio Strategy would come under the umbrella of its Strategic Managed Portfolio Service.

The main aim of the portfolio, which will buy third-party funds, will be to generate income and growth in the longer term. It will invest globally but with a strict ethical criteria.

Mr Mentel said the portfolio would follow Ibbotson’s strategic asset allocation, which currently has 60 per cent in equities and the remainder in “lower risk asset classes”.

“It will be made up of a combination of cash, corporate bonds, UK equity and global equity, aiming to avoid exposure to temporarily fashionable asset classes which then run the risk of becoming overvalued in the short to medium term,” the company said.

Holdings in the fund include the Royal London Ethical Bond, the Kames Ethical Corporate Bond and the Rathbone Ethical Bond funds.

The Managed Ethical Portfolio Strategy will be available initially through the Nucleus platform. Tatton said its total expense ratio was 0.65 per cent.

“There has been growing demand from our adviser community to introduce an ethical strategy, and we believe the portfolio we have put together will prove extremely popular,” said Mr Mentel.

Tatton Capital bought out multi-manager firm Prism Capital Management in a deal last year aimed at building its adviser presence.