Growing demand from millennials for Socially Responsible Investing (SRI) has led to Frenkel Topping launching its own Socially Responsible Model Portfolio (SRMP).
The Frenkel Topping SRMP aims to provide long-term asset growth through investments that achieve a positive impact on social and environmental factors, while excluding those that are ethically unpalatable.
Richard Fraser, Chief Executive of the Frenkel Topping Group, said there was an “acceleration in demand” for model portfolios that demonstrate a blend of the best environmental, social and governance practices from UK investors.
Frenkel Topping has identified socially responsible holdings which fit this profile and has built a model portfolio containing a relatively concentrated portfolio of 17 holdings.
Investments are screened and scored on Environmental, Social and Governance (ESG) factors and look for ESG focused thematic investments. Those that score well include climate change or renewable energy, or those that have measurable impact, for example smart materials or social housing.
Mr Fraser added: “What is becoming increasingly clear is that millennials want their money to be invested for the benefit of society and not just for the investment return.
“There is now a high focus on socially responsible investing. Increasingly people are moving away from investing their money in everything and are becoming more selective by looking for companies that are actively having a positive impact.
“With that in mind, we believe an investment portfolio can achieve more than just an investment return, it can also be aligned with an investor’s deeper social interests or beliefs.”
He said the SRMP, which includes a mix of active and passive funds, has been created using a cautious / conservative risk level for asset allocation and is benchmarked against ARC Sterling Balanced.
Noting past criticism of such socially responsible funds in the past, Mr Fraser added that times have changed.
“In the past people have suggested that SRI funds won’t make as much money,” explained Mr Fraser. “However, the performance of these style of funds is matching traditional funds and, in some cases, outperforming.
“This is for two reasons. Firstly, the stewardship of the asset is managed more diligently so fund managers tend to achieve a healthy return on a clients’ monies. Secondly, there is increasingly more money chasing those SRI assets.
“Also, this is only the beginning of the SRI wave. The human consciousness is forcing change.”
The SRMP is managed by Ascencia Investment Management, Frenkel Topping’s discretionary fund management (DFM) offering, and according to the UN’s Sustainable Development Goal Framework.
Mr Fraser explained Ascencia created its model portfolio earlier this year following a client’s request and is now opening the portfolio to all investors.
Frenkel Topping is targeting its SRMP at individual investors and legal professionals who invest on behalf of their clients.
Frenkel Topping manages the financial assets of people who have suffered catastrophic injuries, including those awarded large compensation payments through personal injury or clinical negligence claims.
With a proven track record in safeguarding the financial future of its clients, the specialist Independent Financial Adviser (IFA) helps secure the maximum compensation settlement they are entitled to. They then carefully invest their clients’ damages to protect their independence and quality of life in the long term.
The firm has 35 years’ experience of listening to its clients’ needs, finding the right investment with a view to ensuring their money lasts a lifetime.
Frenkel Topping has advised many of the UK’s leading law firms and barristers on settlements and investments for their clients.
For more information about the Frenkel Topping Group visit the website.