The ethical strategies have risk/return profiles that are aligned with Heartwood’s total return Balanced and Growth investment strategies, but also include an ethical element.
Managed by Benjamin Matthews, they incorporate both negative screening to avoid exposure to socially harmful activities, as well as a positive overlay to create tilt towards investments with a clear social or environmental benefit.
More specifically, the portfolios are screened to exclude exposure to tobacco, weapons manufacturing, gambling, alcohol and pornography.
Noland Carter, head of Heartwood Investment Management believes the approach is attractive to private investors, charities, trusts and institutions. “Clients across the board are increasingly looking to have portfolios managed in a way that is aligned with their values and ethical concerns,” he said.
“With these globally diversified ethical strategies, clients will benefit from Heartwood’s expertise in building and managing multi asset portfolios, but will also be able ensure their investments have a positive social impact,” added Carter.
According to Matt Hollier, head of investment product at Heartwood Investment Management, the firm has wanted to offer ethical investment options to clients for some time and have conducted substantial research in this area.
He believes Heartwood is now at a point where there is “a sufficient range of high quality ethical investment instruments such that we can build high quality global multi asset portfolios that can deliver appropriate returns to our clients.”