ESG Blend MPS
Cost efficient responsible investing.
We focus on funds that invest in companies that possess good or improving ESG characteristics. The investment strategy is a cost-effective solution that blends our best active responsible investment ideas and ESG-focused index-tracking funds.
0.20%
Annual Management Charge
For investors seeking a portfolio that invests responsibly at a lower cost.
About Our ESG Blend Investment Strategy
- The ESG Blend MPS invests with a core-satellite approach to portfolio management, blending the best of active and passive responsible investment funds.
- Our ESG Investment Strategy has a key focus on maintaining costs within a total cost cap of 0.75% p.a.
Responsible Investment Characteristics
The strategy aims to avoid harm by excluding:
- Adult Entertainment
- Armaments
- Gambling
- Tobacco
Supporting Better ESG Standards
We invest in companies with better Environmental, Social and Governance (ESG) characteristics, relative to their peers.
Reducing Carbon Footprint
We track the carbon footprint of our investments and measures them against objective benchmarks, pursuing a downward trajectory of portfolio-weighted average carbon intensity over time.
Objectives and Investment Policy
Fund Selection
Your investment will be allocated to ESG integrated mandates. The portfolio range is managed using a Core-Satellite approach with a passive low-cost core and a high-conviction active satellite.
Asset Allocation
Your investment will be allocated to fixed income, equity and mixed asset funds.
Risk Management
Risk will be maintained within defined risk profile constraints. Our strategy utilises both volatility and equity risk ranges.
Rebalancing
Minimum semi-annual rebalancing.
Performance Target
Aims to outperform the peer-group and reference benchmark by 0.5-1% annualised p.a net of fees on a 5-7 year rolling basis.
Why choose this portfolio:
Invest in the best of active and passive responsible investing strategies.
The portfolio utilises passive ESG index-tracking funds as its core, providing a highly diversified, low-cost foundation for the strategy.
The active satellite component consists of high-conviction, genuinely active responsible global equities funds to enhance returns.
Cost-efficient responsible investing.
The investment strategy is managed with a total cost cap of 0.75%, ensuring peace of mind that the solution remains cost-effective.
A highly diversified approach to responsible investing.
Our ESG portfolio selects from the full range of highly reputable index-tracking product providers for the core, aiming to minimise costs and tracking error, while enhancing ESG characteristics.
The strategy selects our best responsible investment ideas for the active satellite, typically five global equity funds. Thus, from the universe of 1,000+ funds, only five are chosen.
Compare Our Responsible Solutions
The Ethical Portfolio.
Our ‘Dark Green’ portfolio range. Investing with strict avoidance criteria to avoid harm.
Key Characteristics
- Avoids harm by filtering out harmful industries: adult entertainment, alcohol production, armaments, gambling, oil and gas majors, tobacco, minimise animal testing.
- Invests with a mindset that avoids harm and promotes good business practices.
The Sustainable Portfolio.
Our better future portfolio range. Investing in sustainability and ESG leaders.
Key Characteristics
- Invest in sustainable solutions that contribute towards positive environmental and social outcomes.
- A focus on decarbonisation and green solutions.
- Filters out harmful industries: tobacco, armaments, alcohol production and gambling.
- Invests in companies with commendable ESG records.
Key Characteristics
- Excludes harmful Industries: tobacco, armaments and gambling Investments.
- A focus on decarbonisation.
- Invests in companies with commendable ESG records
Key Characteristics
The portfolio excludes:
- Armaments
- Alcohol production
- Tobacco
- Pork production
- Gambling and speculation
- Adult Entertainment
- Interest on transactions (riba)
Target Market
The ESG Blend MPS is aimed at cost-conscious investors seeking a diversified, risk-controlled investment portfolio that has an ESG focus.
Our ESG Investment Strategy is highly suitable for retail clients and is intended for distribution via FCA authorised financial advisers that have conducted the relevant work to determine their clients’ circumstances, objectives, risk tolerance, appetite, and responsible investment objectives.
Client type
Retail and professional investor.
Knowledge and experience
Basic investor, informed investor, advanced investor.
Capacity for loss
No capital guarantee.
Risk profile
Offered in five defined risk profiles.
Recommended time horizon
Minimum 5–7-year investment time horizon.
Distribution strategy
Investment advice.
Negative Target Market
- Not suitable for clients unable to bear potential losses.
- Not suitable for clients with an investment time horizon of less than five years.
- Not suitable for clients seeking a portfolio with a sustainability focus.
- Not suitable for clients seeking an income generating investment solution.
Other strategies.
We are Available on 14+ platforms.
Access our Model Portfolio Data here
