Blackfinch Asset Management has launched four environmental, social and governance (ESG) approved multi-asset unit trusts, as it makes its move into the retail investment space.
The trusts, which will be known as the Adaptation Funds, will blend both active and passive strategies along exchange-traded funds, bonds and equities and will ‘work within investor’s predetermined risk boundaries’.
Blackfinch founder and chief executive Richard Cook said: ‘The Adaptation Funds are targeted and streamlined in terms of their ratings, structure, reporting and availability. This offering reflects our dual focus on aligning with advisers’ processes and aims alongside clients’ financial objectives.’
The launch follows the rebranding of the Blackfinch Wealth to Blackfinch Asset Management last month, led by ex-Brewin Dolphin director Jason Williams (pictured).
Blackfinch said the funds have been developed as a result of a growing number of financial advisers outsourcing investment solutions in order to meet client’s ethical demands.
Managers will look to include investments where positive impact is clear, employing a positive screen and ‘paying close attention to the impact they make on society and the environment’.
The funds will run alongside the group’s MPS, launched in 2018, but as a retail offering will not be subject to VAT or 10% loss requirements.
The MPS was launched in 2018 by 30 under 30 alumni Alex Sumner and Gareth Deacon, shortly after they joined the firm from Hargreave Hale.
Before this the firm had primarily focused on tax-efficient investments such as EIS, VCTs, and products focused on inheritance tax mitigation.
Blackfinch added that three out of the four funds will target Consumer Price Index plus total returns, while the fourth fund has an income target of a net 3.5% a year.
‘This means that, like the MPS, investors will be able to easily measure outcomes against their investment goals,’ Blackfinch said.
Williams said: ‘The adaptation funds enable advisers to offer an ESG-approved outsourced solution which brings the benefits of greater investment scope and regulatory parameters.
‘The new offering allows us to blend active and passive management styles, recognising the strengths of both approaches, as part of meeting client and adviser requirements.’