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7IM launches ESG portfolios covering 'full spectrum'

7IM launches ESG portfolios covering 'full spectrum'

Seven Investment Management has launched five ethical portfolios as it doubles down on its ESG push. 

The fund house said its latest range of responsible choice model portfolios were aimed at clients looking for a multi-asset option with "responsible, ethical and sustainable principles". 

The annual management fee for the portfolios sits at 0.3 per cent, with ongoing charges of underlying holdings of around 0.4 per cent. 

The new models are currently only available on the 7IM platform but will be available on third party platforms "in the near future". 

7IM said the portfolios are focused on investments which score well on ESG factors and minimise exposure to "controversial activities like armaments, tobacco and thermal coal". 

Verona Kenny, managing director of intermediary at 7IM, said: "The industry has gone ESG mad, we have been ESG mad for the last 14 years and these models cover the full responsible investment spectrum. 

"Green recovery and governance issues are quite rightly high on the global agenda, and the 7IM Responsible Choice Model Portfolios are designed to embrace the opportunities here and offer advisers an avenue to invest along sustainable lines, without having to sacrifice performance."

ESG investing has boomed in popularity in recent years as fears over climate change have led investors to consider the impact of their money and as a growing number of millennials have begun investing.

Recent data from Morningstar showed global assets in sustainable funds hit £1.21trn by the end of 2020, a record high, after investors pumped £111bn into such funds in the final quarter of the year alone.

Terence Moll, head of investment strategy at 7IM, said: "Rather than having separate ESG or stewardship team to focus on issues of sustainability, we believe that ESG matters should sit within the heart of investment teams.  

"These new portfolios build on our 14-year track record in sustainable investing, and when combined with 7IM’s successful multi-asset investment process, offer a robust and responsible solution for investors looking to build a better future." 

In November last year 7IM reduced the cost of its Sustainable Balance fund in a bid to appeal to more investors, cutting the fee from 1 per cent to 0.75 per cent. 

rachel.mortimer@ft.com