The passive portfolios will invest in physically backed ETFs, excluding companies without clear ESG practices.
The Passive Sustainable Dynamic Portfolios sit alongside the firm’s existing actively managed range of Sustainable Dynamic Portfolios to appeal to clients who “want to do more with their savings and investments than purely generate a competitive financial return.”
The range is designed to appeal to clients who want to know that risks to financial returns relating to environmental, social and governance factors are being factored into investment decisions.
Responsible investing has been increasingly in popularity in recent years.
Responsible investment funds attracted a record £1.1bn in net retail sales in December, according to the Investment Association. Responsible investment funds saw net retail sales treble to £10bn in 2020, compared to £3.2bn in 2019.
Declan McAndrew, head of investment research at Foster Denovo, said: “Our Sustainable Dynamic Portfolios have been carefully designed to balance investment risk with returns to help achieve clients’ financial goals, taking into account different attitudes to risk, time frame, capacity for loss and crucially environmental, social and governance criteria.
“Within this new range, as within our Active SDPs, we have focused on combining internal and external expertise to build portfolios that will proactively adapt to this rapidly changing and exciting field.
“This new launch will allow us to cater to an even broader range of investors who are looking for investment portfolios that can manage risk, while also delivering aspirational outcomes that reflect their financial objectives.”