Momentum Global Investment Management will be adding a Sustainable Managed Portfolio Service to its MPS range, alongside existing core strategies.
This comes following feedback from financial advisers and planners who have witnessed the recent surge in investor demand for strategies that balance both commercial and societal or environmental concerns. The Momentum Sustainable Portfolios have been designed with their needs in mind.
The new offering consists of three actively managed risk-rated* multi asset model portfolios that are intended to mirror the headline asset allocation through time of Momentum’s existing core MPS.
- Sustainable Managed Portfolio 4 – a balanced strategy with a sustainability focus, aiming to deliver UK CPI + 4% per annum over the longer term
- Sustainable Managed Portfolio 5 – a moderate strategy with a sustainability focus, aiming to deliver UK CPI + 5% per annum over the longer term
- Sustainable Managed Portfolio 6 – a growth strategy with a sustainability focus, aiming to deliver UK CPI + 6% per annum over the longer term
Each portfolio employs between 18-20 funds, using Momentum’s robust sustainable selection criteria, which is supported by Morningstar’s ‘Sustainalytics’ rating system.
The sustainable MPS range has an emphasis on superior risk-adjusted returns sourced from a diversified blend of managers and is enabled by rigorous quantitative and qualitative research, along with strong credentials in third-party manager selection.
Alex Harvey, Lead Portfolio Manager for MPS at Momentum, said:
“Responsible investing has long been a key element of consideration within our investment decisions and manager selections. We have drawn on this extensive experience in the creation of these sustainable portfolios, as they specifically cater to clients who wish to invest with a greater emphasis on the social and environmental footprint of their investments, whilst not compromising on their financial returns.”
Steve Hunter, Head of Business Development at Momentum, said:
“I am delighted at our enhanced capability to meet a key investor demand for sustainable investing. Across our investment approach, we aim to deliver portfolios with a superior level of diversification and difference. In these model portfolios, we are proud to announce that we have done just that.”
The Sustainable MPS carries a DFM charge of 0.25% and will initially be available on the Aviva, Quilter, and Standard Life platforms.