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We are pleased to announce the launch of a range of ESG portfolios, built using the Progeny investment philosophy. The Progeny Bravo ESG portfolio range is a managed investment service composed of eleven risk-rated solutions.

ESG has seen its profile and popularity rise in recent years, and particularly so in response to the COVID-19 virus. The pandemic has been a wake-up call for us all and has brought to the fore the inextricable links between sustainability, the economy and financial markets.

It has highlighted the importance and accelerated the growing awareness of taking ESG factors into account, whether that is in reference to biodiversity, workplace safety, supply chain issues or any other ESG-related consideration.

What is ESG investing?

Environmental, Social and Governance (ESG) investing is an approach which seeks to encourage positive social and environmental change through your investments whilst meeting your financial objectives.

Over time, ESG has the potential to generate strong, long-term returns by taking into account the impact of non-financial factors, as well as the traditional financial ones.

  • Environmental factors: an example of an important measure here is a company’s carbon footprint and what changes they are making to manage this in the journey towards carbon neutral.
  • Social factors: this can include elements such as a company’s supply chain management. For example, in December 2020, Tesco was identified by the UK government as Britain’s worst minimum wage offender.
  • Governance factors: this can include important factors such as diversity in the boardroom and within the workforce. A lack of diversity can lead to ‘group-think’ and hence lower the quality of decision-making.

ESG investing is the future

The general misconception about ESG investing is that it requires a sacrifice or a compromise when it comes to value. As its name suggests, the Bravo ESG range does not compromise on performance. Bravo is also our way of applauding the actions of the businesses represented in the portfolios, as well as the investors who are making a responsible choice for a sustainable future.

We are at a critical juncture in embracing sustainability as a defining feature of the investment landscape and ESG will be a part of our investment DNA going forward. The next generation of clients will expect to see strategic plans from their investment managers and financial advisers that reflect their principles and seek investments that align with their values.

The Progeny Bravo ESG portfolio

Bravo ESG is an evidence-based, total return portfolio range designed using a systematic discipline. It combines a passive and multi-factor approach, whilst staying true to the empirical evidence of multiple factors outperforming over the long term.

The portfolios are built on the same foundations as our Tempo portfolio range with the key difference being that ESG is implemented at the start of the portfolio’s construction. We put ESG at the core of the investment process, targeting the highest-scoring ESG companies and employing a clear protocol for what companies will and will not be included, along with a reduced carbon footprint.

Each portfolio is set to an asset allocation that progressively increases the factors of risk and returns. They are structured using academic research and the long-term observation of markets and how they work. The funds have been specifically picked to plug in to the asset allocation guidelines which should give comfort when assessing risk.

Our Bravo ESG portfolios are ideal for investors who would like to hand over the day-to-day management of their portfolio to experts. This works well if you would like to make a lump sum investment, because it gives you the reassurance of a carefully selected portfolio of funds, across a broad spectrum of assets. A key advantage is that a discretionary fund manager will continually oversee and make decisions on the portfolio on your behalf, with the capacity and agility to respond quickly to new products in the space, as the ESG market remains a developing one.

Our portfolio range offers asset diversification to fit the level of risk you’re comfortable with, set against the returns to meet your goals. Regular rebalancing of your portfolio ensures it stays on course over the long term.

Experienced team

Our asset management team has been building portfolios and models together for over a decade. With our Bravo ESG portfolios, you can be secure in the knowledge that your investments are being carefully looked after by our experienced investment management team. Your financial adviser will work with you to ensure the most appropriate portfolio is selected to meet your individual objectives, taking into account your capacity to suffer losses within your portfolio and financial goals.

The Bravo range helps our clients reflect their principles, while providing the portfolios to match their investment goals.

More details on our Bravo ESG portfolios range can be found here, or please get in touch for more information.

  Free Download Bravo ESG portfolios brochure Environmental, Social, Governance (ESG) investing   Download Now

This article is distributed for educational purposes and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.

Past performance is not indicative of future results and the value of investments can fall as well as rise. No representation is made that the stated results will be replicated.

Author Ian Hooper

Managing Director, Asset Management

Ian joined Progeny Asset Management as a founding director in 2016 and manages the business day-to-day.

Learn more about Ian Hooper

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