Adviser demand sees Whitechurch place ethical portfolios on platforms

Risk-rated ethical range achieves three-year track record

Whitechurch Securities has made its range of ethical portfolios available on two platforms following a ramp-up in demand from advisers.

The firm’s four risk-rated Prestige Ethical Income & Growth portfolios have been added to the Aviva and Novia platforms, Portfolio Adviser has learned.

Portfolio Adviser understands the range is due to be made available on a further two platforms.

Whitechurch head of socially responsible and ethical investments Amanda Tovey (pictured) said the decision was driven by high demand from its adviser clients.

She said: “We want to make it accessible and the call we are getting from advisers in to provide ethical portfolios on platforms. We are being told that is what advisers want, so will see if and when the inflows come.”

Important theme for advisers

Novia Global managing director Steve Andrews said platforms need to do more to make ethical options readily available across the risk spectrum as investors continue to make these a part of their investment requirements.

He added: “We are pleased to have added the four risk-rated portfolios from the Whitechurch ethical range, further increasing investment choice and potentially providing an attractive solution for investors looking to the ESG universe.”

An Aviva spokesperson said: “Aviva is pleased to have been chosen by Whitechurch to host their new portfolios on our platform. It is clear that ESG is becoming an increasingly important theme for financial advisers, which will only accelerate with Mifid II/insurance distribution directive amendments requiring advisers to give consideration to clients’ ESG preferences.”

Three-year track record

The Whitechurch ethical portfolios are risk rated from 4 to 7. Portfolios 4, 5 and 7 recently achieved their three-year track record and portfolio 6 is due to pass the milestone in October.

According to FE Analytics data, portfolio 4 has returned 20.7% over three years versus the ARC £ Cautious PCI benchmark’s 10.1%. Portfolio 5 has returned 28.6% over three years against the ARC £ Balanced Asset PCI’s 16.5%, while portfolio 6 has delivered 39.9% over the period versus the ARC £ Equity Risk PCI’s 28.8%.

The range invests across UK and global equities, fixed income, commercial property, alternatives and cash.

Tovey said selecting funds for the range starts with a basic negative screen before seeking those which have a positive impact. Examples include clean energy funds such as Impax Environmental Markets at the higher-risk end of the spectrum, as well as the Pictet Water fund which has an ESG overlay, Tovey added.

The range predominantly comprises underlying external funds bar a couple of clients with bespoke portfolios that have direct equities screened by an external provider, Ethical Screening.

Tags: | | | |

Recent News

Leave a Reply