Elston launches range of sustainable portfolios with 100% allocation to sdr-compliant funds

​Elston Consulting, an investment solutions provider supporting UK financial advisers has designed a range of Sustainable model portfolios built with 100% SDR compliant funds. The portfolios have been launched by Elston Portfolio Management, a platform-based MPS provider.

Elston Launches a Range of Sustainable model portfolios

The Elston Sustainable range of model portfolios aims to deliver a multi-asset portfolio strategy built entirely with UK SDR compliant funds. There are five risk-rated portfolios in the range, delivering a multi-asset strategy built entirely with SDR-compliant funds. Ongoing charges average 0.70% in line with the average cost for actively managed SDR-compliant funds.

Each Sustainable model for each risk profile provides assurance to advisers that 100%, of the allocation will be to funds that are compliant with the FCA’s Sustainability Disclosure Requirements (SDR). Although the FCA SDR currently only applies to individual funds, not portfolios, Elston has taken the proactive step of applying the same high standards to the model portfolios it designs by going above the original target level of 90% as per the FCA Consultation CP22/20. It is expected that final regulatory decisions around the application of the UK SDR to MPS providers will form part of the broader review into the MPS market.

The new portfolios are designed for financial advisers and discretionary investment managers looking for sustainable, transparent investment solutions that comply with the UK SDR framework. Furthermore, it gives advisers the confidence they need when serving consumers with a high ESG preference that the portfolios (and funds within them) can be evidenced as being Sustainable from a regulatory perspective. This mitigates the risk of accidental greenwashing by advisers using the proliferation of “Ethical” and “ESG” portfolio which have <50% SDR content. Whilst there are many ESG labelled portfolios available, this is thought to be the first Sustainable labelled portfolio range because of its 100% allocation to SDR-compliant funds.

Henry Cobbe, Head of Research at Elston Consulting

“The FCA is moving in the right direction in its efforts to mitigate risk of greenwashing in the ESG investment space, with the UK SDR framework being a pioneering step. In the absence of finalised guidance for defining what constitutes a Sustainable model portfolio, our aim is both to drive up standards and help our adviser clients avoid any risk of accidental greenwashing by focusing entirely on SDR-compliant funds.”

Andrea Acimovic, Head of ESG Research at Elston Consulting

“With hundreds of SDR funds now available to choose from, we have been able to design these Sustainable portfolios using a growing range of SDR-compliant funds. We hope this new investment solution will help advisers and DFMs wanting transparent, assured and Sustainable model portfolios that are consistent with the SDR framework.”

In the Press:

• Elston launches range of sustainable model portfolios based entirely on SDR funds
• Elston not waiting on FCA as it launches SDR MPS

NOTES

• Elston Consulting is an investment solutions provider established in 2012 designing portfolios, funds and indices for UK financial advisers and discretionary investment managers including MPS providers.
• Elston Consulting supports UK financial advisers’ investment proposition with research, analytics and insights.
• Elston Portfolio Management offers a platform-based Managed Portfolio Service (MPS) to deliver investment management solutions to financial advisers using research, analytics and insights from Elston Consulting.
• Elston Portfolio Management is a trading style of P1 Investment Services Ltd which provides a Hosted Investment Manager service.
• All trademarks are the property of their respective owners.