Ethical Investing  

PortfolioMetrix to open ethical MPS

PortfolioMetrix to open ethical MPS

Discretionary manager PortfolioMetrix is to launch a range of model portfolios with a focus on environmental, social and governance (ESG) qualities, as demand for the products intensifies.

The Ethical Emphasis range will aim to invest in funds that benefit society and encourage better company behaviour.

Investors will choose funds that either use an active positive-screening process to determine holdings or a cheaper passive negative-screening option.

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The firm’s decision comes as fund groups and DFMs increase moves towards the non-conventional investing space. The number of ESG, ethical, socially responsible or ‘green’ options have risen as investors target more socially conscious returns. Whitechurch Securities was among those to launch a similar suite last year.

PortfolioMetrix UK managing director Mike Roberts said client feedback has demonstrated a “real appetite” for ethically focused portfolios.

“We believe we have come up with a set of widely applicable portfolios, based on solid social principles yet still focused on delivering returns within a risk-managed framework,” he said.

Nic Spicer, UK head of research at PortfolioMetrix, added that, since investors will have different beliefs as to what can be categorised as ESG, the range will offer flexibility on which companies are included.

“With this in mind, our Ethical Emphasis portfolios have been designed to focus on companies widely considered to have positive social attributes and to screen out those widely considered troubling.”