A Scottish investment advisory firm has launched an ESG-driven portfolio range which it claims marks a ‘significant advance’ on traditional approaches.
Cornerstone Asset Management, formed in February 2011 by Jason Hemmings, Alan Reid and Laurie Dempster, said its Responsible Futures multi-asset range has been designed to take account of the future challenges faced by society, business and governments while offering investors long-term growth potential.
The range has been developed with London-based Canaccord Genuity Wealth Management. The company says it is a marked departure from ethical approaches as it focuses on sustainability issues in a more “defined manner”.
This defined approach includes selecting companies whose products and services create a positive impact, such as improved nutrition and sanitation, rather than just avoiding bad practices – while the fund also measures the impact of the investment.
The portfolio is also being pitched as less restrictive than ethical investing as it recognises a company might get certain things right while not being perfect in all areas. In addition, each portfolio range is aligned to a specific risk profile and benchmarked to aim for inflation plus returns.
“It is important that we broaden our investment offering to capture the changing attitudes of both the young and old with an investment opportunity for ethically-minded investors,” Jen Paice, managing director of Cornerstone Asset Management, said.
“There’s a greater spotlight on sustainability issues and a groundswell for change. As such, we are bringing more choice for our existing and potential investors to invest in a responsible investment portfolio without compromising investment growth potential,” Paice added.
David Esfandi, chief executive officer of Canaccord Genuity Wealth Management, added: “[This portfolio range] is a real business differentiator – dealing with tomorrow’s issues today. Together, with this focus on Responsible Futures, we can build something we can all be proud of, engage clients and deliver ambitious investment outcomes.”