Elston Portfolio Management has launched a new range of sustainable model portfolios built with funds that are 100% compliant with the FCA’s Sustainability Disclosure Requirements (SDR).
The Elston Sustainable range of model portfolios aims to deliver a multi-asset portfolio strategy built entirely with UK SDR compliant funds.
There are five risk-rated portfolios in the range designed to help advisers and discretionary fund managers seeking sustainable, transparent investment solutions, the firm said.
Although the FCA SDR currently only applies to individual funds, not portfolios, Elston has applied the same standards to the model portfolios it designs by going above the original target level of 90% as per the FCA Consultation.
Henry Cobbe, head of research at Elston Consulting, said: “The FCA is moving in the right direction in its efforts to mitigate risk of greenwashing in the ESG investment space, with the UK SDR framework being a pioneering step.
“In the absence of finalised guidance for defining what constitutes a sustainable model portfolio, our aim is both to drive up standards and help our adviser clients avoid any risk of accidental greenwashing by focussing entirely on SDR-compliant funds.”
Elston said the new range will give advisers the confidence they need when serving clients with a high ESG preference that the portfolios and funds within those, can be evidenced as being sustainable from a regulatory perspective. It said this mitigates the risk of accidental greenwashing.
While there are many ESG-labelled portfolios in the market, this is thought to be the first sustainable labelled portfolio range because of its 100% allocation to SDR-compliant funds.
Andrea Acimovic, head of ESG research at Elston Consulting, added: “With hundreds of SDR funds now available to choose from, we have been able to design these sustainable portfolios using a growing range of SDR-compliant funds. We hope this new investment solution will help advisers and DFMs wanting transparent, assured and Sustainable model portfolios that are consistent with the SDR framework.”
Ongoing charges average 0.70%, the firm said.
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