Doing good, delivering profit

We listen carefully to what our clients have to say about the ways they would prefer to invest. Increasingly, clients are telling us that they want their investments to help build a more sustainable future, as well as generate a financial return. That’s why we  introduced our range of Socially Responsible Investment (SRI) portfolios.

"A company’s moral behaviour is integral to its share price performance."
Nancy Curtin, Chief Investment Officer, Close Brothers Asset Management.

Our SRI portfolios are segregated, discretionary portfolios, invested where possible in direct securities to give your clients greater transparency and lower cost. The service combines our same global, multi-asset class approach, but with consideration of ethical, impact and environmental, social and governance factors (ESG) in the selection of portfolio securities. With a directly invested portfolio, your client has complete clarity of their holdings and the portfolio can be tailored to reflect their specific values. Our investment framework is based on the 17 UN Sustainable Development Goals (Goals). We categorise the Goals into four impact and investment themes:

  • Social empowerment;
  • Environmental protection;
  • Health
  • Economic

Our investment process screens out companies that do not align with the Goals (negative screen), whilst positively identifying investments that promote the Goals, either through the products or services they make (impact) or how they conduct themselves as firms (ESG criteria). We have developed the ‘The Close Brothers SRI screen’, a proprietary model that ranks global securities based on these factors. 

The resulting SRI universe then undergoes the same deep, fundamental assessment of value and attractiveness as all of our investments to create the buy-able SRI universe, from which our SRI portfolios are built.

The portfolios are:

  • Invested in a combination of direct shares and third party funds
  • Reviewed, assessed and approved by our SRI team and analysts with expertise across all asset classes.
  • Actively managed within a framework of institutional discipline
  • Based on the United Nations' Sustainable Development Goals 
  • Reinforced by tailored reporting that allows you to understand impact at both company and portfolio level

A rigorous investment process

1

Strategic asset allocation

A long-term strategic asset allocation framework, directly aligned to your agreed risk profile.

2

Tactical asset allocation

Shorter-term, tactical asset allocation of every asset class, reflecting the current market landscape.

3

SRI security universe

Identification of sustainable and impact investment, relating to companies' positive contributions to the UN Sustainable Development Goals.

4

SRI portfolio

Meticulous security selection based on valuation and ESG analysis in order to meet  SRI and return objectives.

5

Regular reviews

Regular ethical reviews to monitor the operational activities of companies.

More information

Introduction to Close SRI

  • 16 Nov 18
  • 0.14MB
  • PDF

Download

Can we help?

If you would like to find out more, please contact your financial adviser or call us directly.

01606 810 325


Or alternatively use our online contact form and one of our team will be in touch. 

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Please be aware, the value of investments can fall as well as rise and that past performance is not a reliable indicator of future returns and you could get back less than invested. Click here to understand the risks associated with investing. Calls to any number may be recorded for training and monitoring purposes. This site uses Cookies.