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Responsible Investment Service (RIS)
As appetite for sustainable investment solutions grows, we have designed our Responsible Investment Service (RIS) to help clients invest in assets with a positive environmental, social and governance (ESG) impact.
Ethically balanced
We design our RIS portfolios aiming to deliver positive change while meeting your client’s financial goals.
Two ways to invest
Choose from two strategies: ‘Advance’ or ‘Avoid’. The first gives your clients access to investment solutions taking steps to increase their positive impact on the planet; the second excludes sectors which are considered harmful.
Choose your platform
For clients with specific objectives, we can construct a dedicated Responsible Investment Service through our Bespoke Portfolio Service. Alternatively, our RIS Managed Portfolio Service offers a range of portfolios at different risk levels, available directly with us or via a wide range of third-party platforms.
Risk: it’s up to you
We can cater to a number of risk appetites, meaning there’s a level for your clients, no matter what their preferences are.
Tested (and tested again)
Every investment within our diversified range of portfolios is ratified by our unique Centralised Investment Process (CIP). This ensures that the consistency and robust assessment of underlying investments is reflected across our RIS range and the portfolios are regularly monitored and rebalanced when appropriate.
Our strategies: ‘Advance’ or ‘Avoid’
We offer two responsible investment strategies: Advance and Avoid. Both offer an actively managed, multi-asset investment solution that benefits from our investment expertise and oversight.
Advance - what it is
In our ‘Advance’ strategy, you will find funds invested in industries that positively impact the planet.
These include companies that reduce their environmental and social footprint while creating sustainable products, such as clean energy, sustainable transport and education.
Advance - how we invest
Our Advance strategy invests in funds which provide investment exposure to business that:
- Provide direct solutions, through the products and services, to the sustainability challenges that the world is facing
- Take ownership of their environmental and social footprint and are proactively increasing the positive impacts and minimising any negative impacts through evolving business policies and practices.
Avoid - what it is
The ‘Avoid’ strategy excludes investment in pornography, armaments, gambling, tobacco and alcohol. We consistently monitor all investments to ensure these five sectors remain excluded.
We also exclude investments in certain areas of real estate or infrastructure that may be associated with these sectors.
Avoid - how we invest
If the primary objective of your client is to restrict investment into sectors that do not align with their values, our Avoid strategy has exclusionary criteria on the following:
- Armaments
- Gambling
- Tobacco
- Alcohol
- Pornography
Structured research processes
The selection of funds for our portfolios is based on our carefully structured research process. Once selected for inclusion in our portfolios, we ensure ongoing, rigorous monitoring.
We will only invest in funds that explicitly exclude investments in the sectors that we avoid, or those funds where the investments contained will avoid them due to their thematic focus – for example, certain areas of infrastructure and real estate. We monitor all approved investments to ensure that these five sectors remain excluded.
Step one: Identify
Step one: Identify
We consider the whole of the market, identifying funds that may have suitable processes in place to be considered for inclusion in our Advance or Avoid portfolios. This list represents our initial universe.
Step two: Analyse
Step two: Analyse
We then conduct quantitative fundamental analysis to gain an understanding of the traditional characteristics of the funds. For example, style biases, market cap and sector exposures, and performance and risk metrics. All funds under consideration must then complete our Responsible Investment Questionnaire.
Step three: Review
Step three: Review
Our experienced responsible investing team will meet with the managers of the fund to review our findings from the questionnaire and our fundamental analysis and obtain further information if required.
Step four: Monitor
Step four: Monitor
Once an investment is approved by the Asset Selection Committee, we monitor on an ongoing basis to ensure compatibility with our Advance and Avoid criteria. Internal monitoring of holdings, performance, and risk data is combined with regular fund manager meetings.
Step five: Communicate
Step five: Communicate
To communicate the sustainability characteristics of our Advance strategies we produce a thematic report which shows the alignment of our three MPS Advance portfolios to eight sustainability themes. Also, we provide regular and insightful supporting materials and webinars.
Our insights
Where to start
Interested? Let’s talk
How can we help your clients reach their financial goals? Click the link below.
Contact us
Call us on 020 7499 6424 or email us at [email protected]
