Morningstar IM launches ESG managed portfolios

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Morningstar Investment Management Europe's Dan Kemp
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Morningstar Investment Management Europe's Dan Kemp

Morningstar Investment Management has launched five risk-profiled ESG portfolios.

The ESG Managed Portfolios - which were unveiled at Morningstar's 13th annual investment conference yesterday (30 April) - will first be available through the Standard Life Wrap platform.

The multi-asset range comprises five diversified portfolios that incorporate both active and passive strategies to reduce cost, with underlying investments considering the ESG factors.

Through the collaboration with Standard Life Wrap, Morningstar IM's portfolio managers plan to make use of the platform's growing range of ESG ETFs as well as their traditional open-ended funds.

The portfolio management team will draw on nearly 90 investment professionals around the world and Morningstar's research around ESG considerations; they will be selecting funds with a high Morningstar Sustainability Rating and low Portfolio Carbon Risk Score.

Environmental, social and governance concerns have become an increasingly important part of the financial planning process as global climate change debates continue.

Chief investment officer EMEA at Morningstar Investment Management Europe, Dan Kemp, emphasised that the launch of these ESG managed portfolios is to encourage investors to incorporate their values in their investment strategies which, in turn, will present the client with a broader range of solutions.

Kemp said: "Investors wishing to express their views should be able to do so while maintaining access to the highest quality investment strategies. We therefore apply the same rigour and resources we use to manage our conventional portfolios while ensuring that the underlying holdings are consistent with well-established ESG criteria."

Head of UK propositions at Standard Life, David Tiller, added: "ESG is rightly growing in popularity, as investors are increasingly seeking ways for their money to work in a positive way and have a lasting impact on the planet.

"Providing investors with high quality choice is a fundamental objective for us and we are pleased to work with Morningstar on this launch."