Together with Marlborough, we provide two managed portfolio services – CleverMPS Sustainable and CleverMPS Core. The Sustainable range utilises the same quantitative investment methodology as the Core range (which seeks to find the most suitable funds for inclusion in the portfolio), and applies additional corporate and fund-level exclusions to avoid investment in 11 contentious areas.
The CleverEngine, our proprietary fund selection and monitoring system, sits at the heart of the MPS, with ESG fund ratings supplied by the independent research house, MSCI. Portfolio management and governance is supplied by Marlborough’s respected team of portfolio managers, while strategic asset allocation and risk-target management is delivered by Dynamic Planner.
An Overview Of The Sustainable Managed Portfolio Service.
In line with our core investment principles, the Sustainable MPS is powered by a robust, academic, and evidence-based process. Instead of relying on broad aims and principles (which can leave room for interpretation), our approach to sustainable investment is clear, logical, and measurable. All UK domiciled mutual funds are measured against MSCI ESG ratings and given a score, from CCC (laggard) through to AAA (leader). Funds ranked below A+ are excluded at the outset of the fund selection process, leaving only the funds with the ESG credentials to move on to the next phase.
At corporate level, we apply the highest possible restrictions in the MSCI framework. This means no more than 5% of revenue can come from 11 contentious areas – adult entertainment, gambling, predatory lending, alcohol, GMO, thermal coal, civilian weapons, nuclear weapons, tobacco, controversial weapons, and palm oil. Our own fund-level restrictions ensure that no more than 10% of a fund can be exposed to those same 11 areas.
All UK domiciled mutual funds (around 4,000) are analysed by the CleverEngine and given a ‘fund score’ using weighted criteria such as average 12-month performance, R squared, and over or under performance against relevant sector benchmarks.
Each month, the CleverEngine uses these scores to rank funds. Switch recommendations are analysed and actioned by Marlborough’s portfolio managers who work with Dynamic Planner to ensure there is no change to the overall risk ratings of the models.
The CleverMPS comes with a unique, white-labelled client communication system. Using our stylish MPS Portal, you can update your clients monthly about any fund switches made and portfolio performance. All you need to do is press the button. We do the rest.
The Latest Fact Sheets.
Why We Use MSCI’s ESG Ratings.
A leader in the field, MSCI rate over 8,500 companies (14,000 issuers including subsidiaries) and more than 680,000 equity, and fixed income securities globally, collecting thousands of data points for each company. This is why we believe their ESG ratings are the most robust available today. An MSCI ESG Rating is designed to measure a company’s resilience to long-term, industry material environmental, social and governance (ESG) risks.
They use a rules-based methodology to identify industry leaders and laggards according to their exposure to ESG risks and how well they manage those risks relative to peers. This logical, rules-based approach aligns with our own approach to data-led, scientific investment decision making. What’s more, they have received multiple awards as an ESG index provider.
Available To Professional Investors On A Range Of Platforms.
The Clever MPS is a collaboration between Marlborough Investment Management Limited (Marlborough) as discretionary fund manager (DFM) and Clever, the investment technology provider. On platform, you will find the models by searching for ‘Clever Marlborough Sustainable MPS’ followed by the relevant model number.