Parmenion launches Passive ESG investment solution

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For financial professionals only

Parmenion Investment Management (PIM) today launches its first ESG-focused passive investment solution, building on a decade of expertise in this space. Offering a cost-effective and highly diversified ethical solution, PIM Strategic Passive ESG will be available to both existing and new clients from 14th September.

This new range of portfolios will offer 10 Risk Grades, governed by strict volatility and maximum drawdown limits, and will utilise 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 the independent members of Parmenion’s Ethical Oversight Committee and subject to regular due diligence including assessment of their voting and engagement record, fund manager resource, and leadership on ESG issues.

PIM Strategic Passive ESG incorporates ESG factors using 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 indices tracked will for example minimise exposure to weapons, fossil fuel reserves and tobacco production.  As a result, the underlying funds and ETFs exclude around 50%-75% of the broader market. The solution also seeks to invest with fund managers with a focus on engagement and voting on ESG matters.

The management team is made up of Senior Investment Managers: Mollie Thornton and Simon Molica, and Investment Analyst Joe Yallop.  The team will apply their tried and tested strategic approach to asset allocation, along with robust risk management

Parmenion Senior Investment Manager, Mollie 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.”

Parmenion Investment Management’s Managing Director Peter Dalgliesh said: “Many investors want access to passive investment solutions which can bring significant diversification benefits at a lower cost and at the same time express their support for environmental, social and governance factors. We have combined these two needs in our newest offering, PIM Strategic Passive ESG, an innovative investment solution which captures a rapidly developing part of the market.”

The combined investment charge, including underlying fund OCFs and discretionary fund management fees, ranges from 0.21% to 0.34%. Further details on the range can be found here.

This article is for financial professionals only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity.

Parmenion accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.  

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