7IM has announced the launch of its Responsible Choice Model Portfolios, using its expertise in responsible and multi-asset investing to broaden its offering of ESG options for advisers and their clients.
The set of five portfolios, designed to cater for a range of risk profiles from Cautious to Adventurous, are aimed towards clients looking for a multi-asset option that incorporates a full range of responsible, ethical and sustainable principles.
Designed to help advisers provide the end solutions clients really want as the world moves towards a more sustainable future, the portfolios are focused on investments that score well on ESG factors and minimise exposure to controversial activities like armaments, tobacco and thermal coal. Managed by 7IM’s investment team, they also look beyond these factors, with a focus on investing in companies that can have long-term positive impacts on society and the environment.
The portfolios share the same investment underpinnings as the rest of 7IM’s portfolios and funds, including its Strategic Asset Allocation (SAA) and risk management processes, which have delivered strong performance over the past 18 years.
The 7IM Responsible Choice Model Portfolios will charge an annual management fee of 0.30%, with the ongoing charges of underlying holdings of around 0.40%. The new models are currently only available on the 7IM platform but will be available on third party platforms in the near future.
The launch complements 7IM’s track record and proven performance within the responsible investing space, with its Sustainable Balance fund having achieved top quartile performance over 14 years.
Verona Kenny, Managing Director of Intermediary at 7IM said: “The industry has gone ESG mad, we have been ESG mad for the last 14 years. 14 years after launching our top performing Sustainable Balance fund, we are really excited to be now completing our ESG range with the 7IM Responsible Choice Models. These models cover the full responsible investment spectrum.”
“Green recovery and governance issues are quite rightly high on the global agenda, and the 7IM Responsible Choice Model Portfolios are designed to embrace the opportunities here and offer advisers an avenue to invest along sustainable lines, without having to sacrifice performance*.”
Terence Moll, Head of Investment Strategy at 7IM said: “At 7IM, we’re passionate about incorporating ESG values into the work that we do. Rather than having separate ESG or stewardship team to focus on issues of sustainability, we believe that ESG matters should sit within the heart of investment teams.
“These new portfolios build on our 14-year track record in sustainable investing, and when combined with 7IM’s successful multi-asset investment process, offer a robust and responsible solution for investors looking to build a better future.”
*Please note: Past performance is not a guide to future returns