The Responsible MPS range aims to deliver long-term growth for clients who want their investments to avoid “controversial industries” as well as companies with low ESG rankings.
The range follows the same structure as the platform’s Passive, Active and Pactive MPS options, with six risk-managed portfolios matching six risk profiles that are mapped to risk profiling tools used by advisers. The portfolios are multi-asset portfolios using cash, bonds, equities, and alternatives.
The portfolios in the new Responsible MPS are implemented primarily using ETFs and each has a 25% allocation to the VT AJ Bell Responsible Growth fund. The investment platform said this approach “provides exposure to more specialist ESG areas which would be too small to be held as direct investments” within the MPS structure.
The Responsible MPS will predominantly invest in EFTs that track a MSCI SRI index.
The balanced portfolio in the AJ Bell Responsible MPS has an estimated carbon intensity that is 77% lower when compared to investing in the balanced portfolio within AJ Bell’s Passive MPS. The investment platform claims that switching a £20,000 investment from its Passive MPS to the new Responsible MPS is “equivalent to a high meat-eating couple going vegan.”
Kevin Doran, chief investment officer at AJ Bell, said the demand for portfolios with a responsible investment approach has never been higher. He said: “Advisers have told us this is important to them and a growing number of their clients so, in line with our commitment to offering advisers choice, we have expanded our MPS to include a responsible investment option.”
The Responsible MPS is available via AJ Bell Investcentre’s Retirement Investment Account, SIPP, ISA and General Investment Account.
In line with AJ Bell’s existing MPS options, the Responsible MPS has an investment management fee of 0.15% with no VAT. All of the portfolio OCFs, including the AMC and underlying fund costs, are less than 0.5%.
AJ Bell’s normal platform charges will also apply. The annual platform charge for SIPP, ISA and General Investment Account is 0.20%, reducing on assets over £1m. The annual charge for the AJ Bell Retirement Investment Account is 0.25% on assets below £500,000 and 0.20% on assets above £500,000.