Parmenion Investment Management, the investment arm of adviser platform Parmenion, has added an ESG-focused passive investment solution.
The PIM Strategic Passive ESG solution will be available to Financial Planners from today.
The portfolio range will offer 10 risk grades using both funds and ETFs to invest across a spread of asset classes including global bonds and equities.
All underlying funds and ETFs will be reviewed by Parmenion’s Ethical Oversight Committee and due diligence will include assessing voting and engagement records, fund manager resource, and leadership on ESG issues.
PIM Strategic Passive ESG uses a combination of negative screening and positive ESG tilts, meaning higher allocations to companies with higher ESG ratings and exclusion of those with low scores. The scoring excludes around 50-75% of the broader market.
The portfolio range will be managed by senior investment managers Mollie Thornton and Simon Moilica, supported by investment analyst Joe Yallop.
Ms Thornton said: “We are delighted to be able to bring PIM Strategic Passive ESG to the marketplace today, giving cost conscious investors the opportunity to align their investment with their values. With numerous studies now demonstrating that sustainable companies perform better in the long run, our new passive ESG solution will allow investors to tap into the future growth potential of these businesses in a cost-effective way.”
The combined investment charge, including underlying fund OCFs and discretionary fund management fees, ranges from 0.21% to 0.34%.
West Midlands-based EBI administers £1.9bn of funds for over 150 advisory firms and their 7,000 clients.
Private equity firm Preservation Capital Partners acquired the Parmenion platform for £102m, following Standard Life Aberdeen’s decision to sell the business in November 2020. Martin Gilbert’s AssetCo holds a 30% stake in Parmenion Capital Partners.
Parmenion manages over £9bn for more than 1,500 adviser firms and 90,000 underlying clients.
