Series of five diversified portfolios incorporate active and passive strategies, with underlying investments considering environmental, social, and governance (ESG) factors
LONDON, 30 April 2019—At its 13th annual investment conference in London, Morningstar Investment Management Europe Ltd, part of the Morningstar Investment Management group and a subsidiary of Morningstar, Inc. (Nasdaq: MORN)., today announced the launch of the Morningstar® ESG Managed Portfolios.
The Morningstar ESG Managed Portfolios series comprises five portfolios aligned to Morningstar’s established risk profiles and compatible with other leading risk tools. The multi-asset portfolios are managed using Morningstar’s distinctive long-term valuation-driven asset allocation approach and use both active and passive funds to maximise the potential reward for risk while reducing the cost as far as possible. The portfolio management team draws on expertise from nearly 90 investment professionals around the world and are supported by Morningstar’s industry-leading research, data, and thinking around ESG considerations.
“Environmental, social, and governance concerns are becoming an important part of the financial planning process. Our aim is to enable investors to incorporate their values as part of their investing goals and also help advisers provide a broader range of solutions to their clients,” said Dan Kemp, Chief Investment Officer EMEA, Morningstar Investment Management Europe Ltd. “Investors wishing to express their views should be able to do so while maintaining access to the highest quality investment strategies. We therefore apply the same rigour and resources we use to manage our conventional portfolios while ensuring that the underlying holdings are consistent with well-established ESG criteria.”
The Morningstar ESG Managed Portfolios range will be available first on the Standard Life Wrap platform. Standard Life Wrap is an award-winning1 adviser platform and one of the only platforms with the highest possible rating for financial strength2. Its success is based on delivering high quality investment capabilities and working with top fund managers and discretionary fund managers to support advisers to deliver the best possible propositions to meet their clients’ needs. Working with Standard Life Wrap enables Morningstar Investment Management’s portfolio managers to make effective use of the Standard Life Wrap platform’s growing range of ESG ETFs as well as traditional open-ended funds.
“We’re delighted that Morningstar have chosen to launch on the Standard Life Wrap platform. It’s a testament to the strong reputation our investment hub has with both advisers and discretionary fund managers. ESG is rightly growing in popularity, as investors are increasingly seeking ways for their money to work in a positive way and have a lasting impact on the planet,” said David Tiller, Head of UK Propositions at Standard Life. “Providing investors with high quality choice is a fundamental objective for us and we are pleased to work with Morningstar on this launch.”
The launch of the Morningstar ESG Managed Portfolios is Morningstar’s next step in supporting environmental concerns of investors. The portfolio management team orientates the range’s holdings towards more sustainable companies by selecting funds with a high Morningstar Sustainability Rating™ and low Morningstar® Portfolio Carbon Risk Score™. Morningstar’s sustainable investing data set contains more than 175 ESG metrics, including the Morningstar Sustainability Rating for 50,000 funds as well as data points to screen for ethical issues. Learn more about Morningstar’s commitment to socially responsible investing here. Follow the conversation on Twitter with the hashtag #MstarESG.
Morningstar Investment Management group’s 20-strong EMEA investment team works with advisers and professional investors to deliver market-leading investment solutions supported by the company’s research-driven asset allocation, manager selection, and portfolio construction capabilities. In 2013, the company launched Morningstar® Managed Portfolios, its discretionary investment management offering, for UK investors, followed by managed portfolios for investors in South Africa in 2016.
About Morningstar Investment Management Europe Ltd. and Morningstar’s Investment Management Group
Morningstar Investment Management Europe Ltd. is a member of Morningstar’s Investment Management group, a leading provider of discretionary investment management and advisory services. Guided by seven investment principles, the group is committed to focusing on its mission to design portfolios that help investors reach their financial goals. The group’s global investment management team works as one to apply its disciplined investment process to all strategies and portfolios, bringing together core capabilities in asset allocation, investment selection, and portfolio construction. This robust process integrates proprietary research and leading investment techniques. As of 31 March 2019, Morningstar’s Investment Management group was responsible for more than US$210.0 billion* in assets under advisement and management across North America, EMEA, and Asia-Pacific. In the UK, Morningstar Investment Management Europe Ltd is authorised and regulated by the Financial Conduct Authority to provide these services to Professional clients.
*Includes assets under management and advisement for Morningstar Investment Management LLC, Morningstar Investment Services LLC, Morningstar Investment Management Europe Ltd., Morningstar Investment Management Australia Ltd., Ibbotson Associates Japan, Inc., Morningstar Investment Management South Africa (PTY) LTD, and Morningstar Associates, Inc. all of which are subsidiaries of Morningstar, Inc.
1 Winner of Best Platform Provider (AUM £25 Billion Or More), 2018 UK Platform Awards; Awarded Defaqto 5 Star Rating for Adviser Platform, 2019
2 Awarded A rating (Superior) for financial strength by AKG, 2018
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Mary Kenefake, +44 (0) 203 1941027 or mary.kenefake@morningstar.com