Ethical Model Portfolio Service

Our ethical model portfolios were launched in February 2010. They adhere to a strict screening policy, laid out online and in our product brochures, investing predominantly into active funds across a range of asset classes.

Ethical Model Portfolios

Our ethical model portfolios were launched in February 2010 following demand from our IFA clients for a discretionary ethical product that could be accessed through wraps and platforms. Now available on multiple adviser-focussed platforms (list available below), advisers have access to seven models ranging from defensive to adventurous (including an income portfolio). Our seven Ethical MPS combine funds only across a range of asset classes, actively managed by the King & Shaxson Asset Management Investment Committee who meet on an ongoing basis.

Our platform model portfolios apply both a positive and negative screen, meaning we are able to provide a solution to advisers who are seeing a surge in demand for portfolios that avoid areas of contention whilst aligning to sustainable companies.

Our ethical model portfolios adhere to a strict screening policy, laid out online and in our product brochures, whilst portfolio parameters outline asset allocation bands to which the models adhere to. Third party data on performance and risk is available from FE Analytics, EV, Dynamic Planner and Defaqto. Our MPS product brochure can be requested below, and factsheets found further down this page.

Ethical Model Portfolio Brochure Request

Complete the form below to receive our detailed ethical model portfolio service analysis brochure that highlights full current holdings, allocation and rational in a client friendly format.

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Established Platforms

Our ethical model portfolios are designed to be available on any full-service fund platform. The platforms listed below are those where our portfolios are already established. If you use an alternative platform and would like to access our portfolios, then please contact Craig Hart on 020 7426 5979 and we will endeavour to work with you to add the portfolios to your preferred platform.

  • 7IM
  • ABRDN
  • Aegon
  • Aviva
  • FundsNetwork
  • Hubwise
  • M&G wealth
  • Morningstar
  • Novia
  • Nucleus
  • Platform One
  • Quilter
  • Scottish Widows
  • Transact
  • True Potential
  • Wealthtime

Risk Data

Model Portfolio Screening Approach

Portfolios should be managed to two, instead of one set of criteria: the investment criteria is straightforward, like any other investment, whilst the ethical and sustainable criteria requires a ‘more human approach’.

We utilise both a negative and positive screening process. Avoiding traditional ‘sin stocks’, but also areas such as Fossil Fuels and Nuclear Energy. Meanwhile, many of the positive themes we aim to provide exposure to are associated with mega-trends, for example access to healthcare, decarbonisation and the circular economy.

The method we use to screen investments includes both a process driven quantitative and values-based qualitative approach. This is because whilst quantitative ESG data is an important part of screening a company or fund, it is necessary to look beyond just data and take into account other sources of information.

It has become clear in the last couple of years that clients would like to go beyond ESG risk analysis, and focus on the sustainable merits of investments. Therefore, as detailed in our product brochures, our model portfolios have an obvious bias towards sustainable companies. We provide regular updates on some of the positive outcomes of client’s portfolios, whether that’s through our monthly ‘Everything Ethical’ email, or our quarterly and yearly reporting.

It is important to note, our model portfolios are designed to meet the vast majority of investor’s concerns, but as the portfolios include a number of collective funds and also aim to spread the risk of investing in a tightly defined area, there needs to be a pragmatic approach. Having said that, we conduct thorough research on all funds in what we call an ‘under the bonnet’ review. Our negative and positive screen is laid out below, and we adhere to the strict screening policy, whilst staying within the investment constraints of each portfolio and platform.

The portfolios avoid significant involvement in:

  • Gambling
  • Armaments
  • Adult Entertainment
  • Alcohol Production
  • Tobacco Production
  • Nuclear Power Generation
  • Fossil Fuel Exploration & Production
  • Major Environmental Management Concerns

Our aim is to achieve zero exposure to the above sectors. Whilst our portfolios are not focussed on transition companies, where companies have credible and substantial plans to transition away from excluded activities, and where these plans are already evidently well underway, they may be included in portfolios. E.g. Orsted – a company who have transitioned away from fossil fuels to be one of the largest wind farm operators but who still have a small legacy exposure to fossil fuels.

  • Alternative Energy (Climate Change)
  • Green Building (Climate Change)
  • Energy Efficiency (Climate Change)
  • Sustainable Water (Natural Capital)
  • Sustainable Agriculture (Natural Capital)
  • Pollution Prevention & Control (Natural Capital)
  • Nutrition (Basic Needs)
  • Sanitation (Basic Needs)
  • Affordable Housing (Basic Needs)
  • Major Disease Treatment (Basic Needs)
  • Education (Empowerment)
  • Connectivity (Empowerment)
  • SME Financing (Empowerment)

Our factsheets, found in the table below, detail the positive investment themes that each model portfolio is exposed to.

Funds MPS Factsheets

We offer seven ethical model portfolios which combine a number of daily traded bond and equity collectives. These portfolios cater for a range of risk requirements, as well as a portfolio that has an Income focus.

Model Defaqto Risk Rating Dynamic Planner EV Risk Profiled Profile Factsheet
Defensive A "Defensive" risk portfolio seeks to provide an enhanced level of capital protection whilst still allowing investors the ability to achieve modest long-term growth (10 years). The portfolio is suitable for risk-averse investors whose financial temperament cannot tolerate variation in performance. Whilst the emphasis is on lower volatility and capital preservation, a small amount of risk will be taken to seek a higher return. Click to open file
Cautious A “Cautious” risk portfolio seeks to provide a level of capital protection whilst still allowing investors the ability to achieve long-term growth (10 years). The portfolio is suitable for risk-averse investors whose financial temperament cannot tolerate much variation in performance. Whilst the emphasis is on lower volatility and capital preservation, a modest amount of risk will be taken to seek a higher return. Click to open file
Balanced A “Balanced” risk portfolio seeks to provide a balance between capital protection and appreciation by investing in a diversified portfolio of asset classes over the long-term (10 years). The portfolio is suitable for those whose financial situation can tolerate a moderate level of volatility in performance. Click to open file
Balanced Growth A “Balanced Growth” risk portfolio seeks to provide a riskier alternative to our balanced portfolio, with an increased bias to capital appreciation by investing in a diversified portfolio of asset classes over the long-term (10 years). The portfolio is suitable for those whose financial situation can tolerate an above moderate level of volatility in performance. Click to open file
Growth A “Growth” risk portfolio seeks to have a higher bias towards capital appreciation and is suitable for those whose financial situation can tolerate an above moderate to high level of volatility in performance, in return for above average returns over the long term (10 years). Click to open file
Adventurous An “Adventurous” risk portfolio seeks to achieve high returns. Investors must be prepared to accept a high level of risk and volatility in the expectations of higher-than-average returns over the longer term (10 years). The portfolio will mainly consist of equity funds so investors will take a high degree of risk with their capital. Click to open file
Income An “Income” portfolio seeks to provide a higher level of income, this is with a balance between capital protection and appreciation in a diversified portfolio of assets. The portfolio is suitable for those whose financial situation can tolerate a moderate level of volatility in performance. Click to open file

Model Portfolio ESG and Impact Report Archives

Please find below an archived list of Model Portfolio Reviews: