The next issue of the Good Investment Review is now available to download. In side this issue of the review the writers explores some of the important themes surrounding Responsible Investment (RI). The review provides clarity on the terminology surrounding this style of investing, outlining how to think about and define RI, to help avoid confusion amongst investors. The review outlines the growth in RI funds, highlighting new funds that have entered the 3D Investing universe over the last 6 months, and how the performance of RI funds compares to their traditional counterpart.
We are proud to be sponsors of the Good Investment Review and have supported the publication for many years. In our article as part of the April 2021 Review, we outline how we view Responsible Investing and how we are tackling this area of investment.
THE STORY FROM CHORLEY
Yes Chorley in Lancashire! home to a small model portfolio manager called Pennine Wealth Solutions (PWS). In 2016 PWS launched their Positive Pennine Portfolio range. To date it has attracted £25.2m from 610 investment accounts held by over 400 retail investors.
The PWS team understood very quickly that they had to attract the regular investor, people who had thought this a ‘specialist area’ and not for them. Their own investor surveys showed that there was a willingness to at least place a portion of their investments into ESG and Impact portfolios.
“It’s when the everyday, average investor utilises ESG solutions, that the world can start to change. The weight of invested money means that even the small investor can contribute towards great improvements.”
Back in 2016, IFAs were way behind the curve. It’s taken COVID and multiple lockdowns to accelerate their understanding and involvement. “We had to train and educate the IFAs” says Sean Fisher, Business Development Manager. Several sessions and visiting guest speaker specialists from WHEB, Liontrust, and the 2030 Hub helped greatly.
The Positive Portfolios utilised third party ESG and Impact analysis right from the start.
“We are heavily into utilising investments that work towards the UN goals. The more impact we have, the better”, says Sean. We score very highly in terms of doing good.
The influence of John Fleetwood’s work saw to that.
Any movement along the ESG continuum is welcome. However, we are a bit dubious of many of the recent additions to the ESG bandwagon. A sprinkle of E, and a touch of G, do not make an ESG leader. The S is often lost altogether.
Marketing Manager at PWS Jayne Raven has created a second website www.positivepennine.co.uk to inform the investor. “These types of investors need two types of data. They want the usual financial information, but equally important is impact and ESG information. How does their pension do good? The more data the better.”
Jayne and Sean are also responsible for the quarterly PWS investment seminars. 100-150 investors watched the latest video recording. They can speak directly to their portfolio managers. Ask questions, share thoughts. During lockdown these have continued as webinars. Jayne adds, “by meeting many of our investors on a regular basis, we can communicate far better. They feel close to what is happening with their money. This encourages them to stay invested for the longer term. Not to panic with short term dips in the market.”
Over 100 investors attended the (Blackburn) 2020 investor seminar
Investment returns from the Positive Pennine Portfolios have been very strong. By August 2021, they will have a 5-year track record. Fact sheets are available from www.penninewealthsolutions.co.uk Any concerns about performance have been blown out of the water.
PWS have been recognised as a GOOD EGG by consumer website Good with Money. The sustainable goods website Blue Patch also recognises Positive Pennine.
WHAT ABOUT THE FUTURE
PWS want to attract more investors and build our influence further.” You will always find us at the Impact end of the ESG continuum. By matching investor needs with solutions that have a positive impact.”
They have considered a passive range of the Positive Portfolios but don’t believe this is technically available yet.
As IFAs understand the huge variance in the ESG range of investments, PWS hope to appeal to those attracted to Impact Solutions. “We believe the pandemic has created a universal conscious need for a more caring and sustainable world. We have a key role to play.”
If you find our article interesting and would like read more of the Good Investment Review, you can download the full document here
Positive Pennine is a trading style of Pennine Wealth Solutions LLP, which is authorised and regulated by the Financial Conduct Authority and is only available through authorised Financial Advisers.
Investors should remember that the value of investments, and the income from them, can go down as well as up. Investors may not recover what they invest. Past performance is no guarantee of future results. Any mention of a specific security should not be interpreted as a solicitation to buy or sell a specific security.