Tilney's Professional Arm has launched a managed sustainable portfolio service to meet growing demand for ESG investing in the wider advisory space and meet regulations that are making ESG part of investment suitability tests.

Originally launched direct to clients in September 2011, Tilney has launched a Sustainable Managed Portfolio Service (MPS) to the wider advisor community.

With performance built over nine years, the Sustainable MPS portfolios typically invest in 15 to 20 investments, including OEICs, unit trusts and ETFs that are selected by Tilney’s investment team. The range, which carries a 0.6 per cent (+ VAT) annual management fee, has been launched to meet the growing appetite among UK advisors for discretionary funds services based on ESG values.

“Demand for sustainable and ethical strategies has been growing exponentially in recent years as private clients, trustees and charities have been increasingly concerned about issues such as climate change, plastic pollution and standards of corporate governance," Craig Wright, managing director and head of business development at Tilney for Professionals, said.

The range meets six risk profiles including conservative, cautious, balanced, growth, adventurous and maximum growth, with a ceiling for equities exposure ranging from 40 per cent to 100 per cent, the investment firm which manages around £24 billion for clients, said. Allocations are in equities, bonds, property, absolute return, commodities and cash, and are regularly rebalanced and reflect Tilney’s asset allocation committee, it added. Advisors will be responsible for assessing individual clients risk and will be assigned a Tilney relationship manager as part of the offering.

The minimum investment is £50,000 which Tilney says offers financial advisors “a high-quality" service at a "relatively modest threshold”. It is available across all tax wrappers, including ISAs, SIPPs, SSAS, and offshore bonds.

“With amendments to MIFID II being introduced requiring ESG considerations to be a mandatory part of the suitability assessment for clients, it is imperative that financial advisors are able to meet the needs of their clients with high-quality, managed solutions,” Wright said.

Based in Mayfair, London, the Tilney Group operates across 30 sites in the UK.