Responsible Futures a Cornerstone solution for ethically-minded investors
One of Scotland’s leading independent financial advisory firms, Cornerstone Asset Management has unveiled an ESG-driven Responsible Futures portfolio range aimed at those ethically-minded investors looking to align with a new innovative investment proposition that addresses the issue of sustainability and directly supports the United Nations Sustainable Development Goals.
Ethical and environmental investing is at the forefront globally and across the generations so this new Responsible Futures portfolio has been developed with Canaccord Genuity Wealth Management to take into account the future challenges that the world, society, business and governments face whilst importantly offering investors additional attractive opportunities for long-term growth potential.
The term sustainable investing is a broad one and covers a number of different themes supporting issues such as global warming, water shortages, inequality and poverty in specified markets. There are three main strands of ESG (Environmental, social and corporate governance) across the portfolio range:
- Ethical investing excludes certain companies, for example tobacco companies or weapons manufacturers from an investment fund or portfolio on moral grounds.
- ESG investment selections based on the Environmental and Social impact of a company and the quality of its Governance. It’s less restrictive than ethical investing as it recognises that a company might get certain things right, while not being perfect in all areas.
- Impact investing actively selects companies whose products and services create a positive impact rather than just avoiding a negative one. It also measures the impact of the investment.
This alternative investment offering by Cornerstone marks a significant advance on the more traditional ethical investment funds to invest in a long term portfolio that actively benefits society, climate change and sustainability issues in a more defined manner. It focuses less on the traditional exclusion of ‘bad practices’ and more on positive impact programmes, such as improved nutrition and sanitation, and those that save and nurture the natural environment. The Sustainable Futures Multi Asset Portfolio range has been created in line with Cornerstone’s wider investment strategies, so each portfolio is aligned to a specific risk profile and benchmarked to aim for inflation plus returns.
The issues that are dominating now and challenging our future can only be tackled through a combination of international government co-operation on regulation and private enterprise and innovation. Proper pricing of environmental cost through regulation will harness the profit motive to the cause of environmental sustainability. The solution cannot be through government action or private enterprise in isolation.
The concerns are not restricted to one single sector or one geographic region and neither are the solutions. Therefore, investing thematically in the various ESG ways can deliver a diversified and robust portfolio, which will benefit from long term drivers of performance. Cornerstone believes that now is the right time to consider introducing an investment solution in a manner, which is growing in awareness globally and underpinned by long term government policy.
Jen Paice, managing director of Cornerstone Asset Management, said:
“It is important that we broaden our investment offering to capture the changing attitudes of both the young and old with an investment opportunity for ethically-minded investors. There’s a greater spotlight on sustainability issues and a groundswell for change. As such, we are bringing more choice for our existing and potential investors to invest in a responsible investment portfolio without compromising investment growth potential.”
The last two years have seen a marked maturity in opportunities to invest in funds created by asset managers who are recognising the global demand for action. By supporting those practices that deploy the world’s resources in a more efficient and forward-looking manner, ethically minded businesses recognise that they have obligations to a wide range of stakeholders, including their clients, investors, employees and society. Cornerstone believes that responsible investing means backing companies that manage these relationships wisely.
Commenting on the portfolios, David Esfandi, CEO of Canaccord Genuity Wealth Management said:
“We are delighted to be working in partnership with Cornerstone Asset Management with this range of Responsible Futures portfolios, a real business differentiator - dealing with tomorrow’s issues today. This is a combination of our experience and knowledge in the field of ESG investing with Cornerstone’s dedication to best client outcomes. Together, with this focus on Responsible Futures, we can build something we can all be proud of, engage clients and deliver ambitious investment outcomes.”
Jen Paice, concluded:
“We are bringing more investment choice for ethically minded investors who wish to tap into responsible investment themes, which appear to be at the forefront of a significant long-term economic trend.”
Cornerstone Asset Management was formed in February 2011 by Jason Hemmings, Alan Reid and Laurie Dempster. With offices in Edinburgh and Glasgow, Cornerstone is focused on wealth management and corporate financial planning.