Brighter World MPS (Passive)

Our Brighter World MPS were launched in 2023 and offer clients a lower cost alternative whilst still adhering to a relatively stringent screen. Investing predominantly into passive funds, the portfolios provide access to sustainable companies with an active management overlay.

Brighter World MPS

Until recently, offering a lower cost largely passive based range of portfolios has not been an option given the lack of investment solutions with a credible screen in place. We have been wary of the implications given our credibility and genuine sustainable focus. However, we understand the need for a product to accommodate the more cost-conscious investors, whilst still adhering to a negative and positive screen.

The expansion of Exchange Traded Funds (ETFs) has disrupted the investment industry, and alongside Index Funds, there has been an acceleration in the number of viable investment options, including a notable acceleration in thematic ETFs, targeting investment areas such as Water & Waste and Clean Energy. As a result, we feel we are in a position to provide an alternative lower cost passive blend solution to our adviser audience, targeting sustainable companies and positive investment themes but at a more competitive overall cost compared to our existing ethical model portfolios.

Important Documents

MPS Screening Policy

Brigher World MPS Brochure Request

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

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Brighter World MPS Screening Approach

When conducting our analysis, we wanted to select an index and screening methodology which aligned to clients’ values, ensuring controversial sectors or activities were in many cases avoided or drastically reduced through the negative screens applied.

Through the MSCI SRI Filtered Paris-Aligned-Benchmark series, we have been able to construct a core equity allocation that avoids the most controversial sectors, whilst focusing on the best of class businesses in each sector. Meanwhile, our satellite thematic equity exposure will enhance the portfolios sustainability credentials by providing exposure to environmental or social solutions providers. A best of class ESG screen is applied to the core allocation based on a company’s overall Environmental, Social and Governance scores, with those scoring poorly being removed from the universe. These are based on MSCI’s ESG ratings which look into material ESG factors specific to a company’s sector.

Portfolios’ bond allocation will include exposure to a range of debt, such as money markets, government debt, corporate and high yield bonds. However, we have maintained the positive focus of the asset class through allocations to labelled bonds, predominantly green bonds, but also social and sustainable bonds.

Whilst adhering to a robust negative screen, there is a slight variance to our existing ethical model portfolios, predominantly through the use of company revenue limits, whilst Nuclear Energy generation is permitted in the Brighter World MPS. The universe will be broader compared to our existing model portfolios, with exposure to areas such as mining or nuclear energy something some investors may want to avoid. In this case, our existing ethical model portfolios would be more suitable given the more stringent screen in place. Nonetheless, companies contributing to positive environmental or social outcomes will be targeted, including through each portfolio’s thematic equity exposure. We will report to investors on portfolios alignment to MSCI’s sustainable taxonomy, which aligns with many of the United Nation’s Sustainable Development Goals.

Negative Screen

The portfolios avoid significant involvement in:

Alcohol Production >5% revenue
Adult Entertainment Production >5% revenue

Controversial/Nuclear Weapons >0% revenue
Conventional Weapons >5% revenue

Civilian Firearms Production >0% revenue
Gambling >10% revenue

Oil & Gas Extraction/Production >10% revenue
Tobacco Production >5% revenue

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. Eg Orsted