Implemented Portfolios Limited (IPL) has just launched a new range of ESG Aware Model Portfolios. Head of Investment services Chris Smith spoke to Industry Moves about the need for the new portfolios and the continuing popularity of managed accounts.
Why did you decide to launch these portfolios?
Essentially, we'd seen a huge amount of demand from our adviser base that was driven, probably from increasing demand from their own clients looking to have more personalised investment solutions in line with their values. We wanted to meet that demand of our existing client base but also could see a pathway to combine a model portfolio in our IMA solution, which could meet those requirements.
What do these model portfolios invest in?
The portfolios that we have launched leverage off our existing dynamic asset allocation capabilities in house. And so, we execute that dynamic asset allocation strategy utilising a series of ETFs and some direct securities, as well. These ESG Aware Model Portfolios will predominantly be ETF based. That's still utilising the DAA strategy, still leveraging off that core capability in house of the dynamic asset allocation but then, when it comes down to the underlying selection, we are using a series of different ESG ETFs to increase the ESG scores of the overall portfolio
There are a lot of ESG ETFs around now, is that helpful?
Yeah, so that's sort of part of the reason why it took us to this point to get something out. It's been a while coming to get ETF market and product availability to a point where you can build a complete portfolio or get close enough to a complete portfolio. Talking with various issues globally, it feels like it's only just the start of that journey, and we're going to see a huge amount of new product launches over the coming months I expect.
How has the business faired over the past 12 months?
It has been a tricky time for advisers really in general. But we've continued to see new advisers join our service, we've continued to see clients increase and fund numbers increase throughout the last 12 to 18 months, which is great. I think more and more advisers are recognising the efficiencies of managed accounts and what that can bring to their own businesses. And I guess, you know, we like to think with the IMA service we can deliver an engaging investment experience and that can really resonate well with the underlying clients and the advisers get comfort in that. We expect to continue that trend and then as we come out of COVID and, and return to a more normal environment, we think that will continue and probably speed up a little bit.