Parmenion Investment Management has launched a set of ESG-focused passive investment portfolios.
The portfolios will offer 10 risk grades, investing across a range of asset classes through funds and ETFs.
These underlying funds will be reviewed by the company’s ethical oversight committee and subject to regular due diligence which will look at assessment of the funds’ voting and engagement record, fund manager resource, and leadership on ESG issues.
The portfolios will use both negative screening and higher allocations to companies with better ESG ratings, and the exclusion of those with lower scores.
This will ultimately mean around 50-75 per cent of the broader market will be excluded from the portfolios.
The ongoing charges for the products will be between 0.21 per cent and 0.34 per cent.
Managing director of Parmenion investment management, Peter Dalgliesh said: “Many investors want access to passive investment solutions which can bring significant diversification benefits at a lower cost and at the same time express their support for environmental, social and governance factors.
“We have combined these two needs in our newest offering, PIM Strategic Passive ESG, an innovative investment solution which captures a rapidly developing part of the market.”