FE Investments has launched a range of responsible investment reports to help advisers and their clients delve deeper into the ESG principles of their portfolios.
The managed portfolio service provider has launched the reports across all of its managed portfolio ranges and includes ESG reporting, data and other insights to help advisers explain the exposure risks associated with portfolios, funds and underlying holdings in clear and simple terms.
FE Investments said it will allow investors to compare portfolios on a like for like basis to determine which model best suits their needs.
Taking a hypothetical £1 million investment portfolio, the reports break down to the pound how much of the portfolio is geared towards thematic, social and environmental issues, such as major disease treatment, sanitation, education and SME finance, as well as alternative energy, green building and pollution prevention.
The reports use MSCI data to rank companies within a portfolio by their social and environmental impact revenue and their exposure to “controversial” industries such as tobacco, alcohol, weapons manufacturing, gambling and adult entertainment. Controversies are flagged up on the report for advisers to discuss with clients.
Rob Gleeson, chief investment officer at FE Investments, said: “Until now much of the discussion and solutions developed surrounding ESG investment have been industry led. Our view is that no retail client wants an ‘ESG’ portfolio; they want to make investments which adequately reflect their beliefs. ESG and the grouping together of these disparate and sometimes conflicting ideas are often not effective in meeting client demand.
“Instead investors want to know their investments are doing less harm, doing more good and delivering on risk and returns. Investors are non binary and will always have different priorities. These reports allow them to better match their portfolios to these priorities rather than being forced into an either-or decision.”
Gleeson added: “We have developed a unique proposition and reporting that seeks to delve deeply into the sustainable aspects of investing, beyond what is currently available through existing ESG reporting solutions.”
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