As an example, the tables show the positive and negative filter data from the Ethical Screening Fund Portal Filter Data (April 1 - Oct 5).
But there is plenty of choice out there for advisers: there are a number of these online tools available, with SRI Services and Square Mile having operated in this field for a number of years.
Matching the client responses with the funds available via the database with produce a list of available funds, ranking them in order according to how closely they match the client’s choices.
Business as usual
With this information it becomes business as usual, but with a sustainable twist: carry out your due diligence, risk assessment, research, portfolio construction and so on, and pull together interesting stories and items from the selected funds with which to further engage with the client.
But please, not the massive corporate social responsibility reports, or voting and engagement Bibles.
Do short, interesting and stimulating items that will make the client feel good about where their money is invested, and impressed that you have made the effort to take them and their issues seriously.
There is plenty of content available to advisers, such as partner content on various online tools, which can provide information that will fulfil this need.
I covered the area of the sustainable MPS in my last article - 'How I talk ESG with clients'. We used a bespoke version of an MPS for many of our clients, and find that it offers a dynamic opportunity for ourselves and our clients.
We continue to use the method and resources outlined above, however, as this allows us to both investigate funds, but more importantly to add flavour and content to our client offerings and communications.
MPs, MPS and floods of information
Returning briefly to the ESG question in this specific regard, if one searches online for ESG MPS, results are patchy.
Typing in 'Sustainable MPS', however, will bring up a veritable flood of options on an internet search. I do not know why - perhaps as a bizarre manifestation of search engines - but there are also myriad profiles of sustainable model portfolios.
However, much like the labelling debate is currently looking to pin down how 'sustainability' is defined and expressed by fund managers, there is equal diversity and potential for confusion among MPS providers.
Although model portfolios can offer access to fantastic management teams and sustainable investment expertise at reduced cost with greater diversification, similar due diligence is required to identify a service that is aligned to your client's needs and engages with their ethical concerns.
