Morningstar IM launches ESG managed portfolios

Pedro Gonçalves
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Morningstar IM launches ESG managed portfolios

Morningstar Investmnent Management has launched a series of model portfolios for sustainable investing that will be available first on 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.

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"

Morningstar IM is a subsidiary of Morningstar, which provides investment data and research. The company said portfolio managers would be supported by the Morningstar research and data on environmental, social and governance issues.

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.

Dan Kemp, chief investment officer EMEA at Morningstar Investment Management Europe, 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 added: "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."

Standard Life head of UK propositions David Tiller said: "We're delighted that Morningstar have chosen to launch on the Standard Life Wrap platform. It's a testament to the strong reputation our investment hub has with both advisers and discretionary fund managers.

"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."

 

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