Morningstar on Thursday announced the launch of the Morningstar ESG Asset Allocation Managed Portfolios, a series of five funds of ETFs and mutual funds, for advisors whose clients are concerned about environmental, social and governance issues.
Like all managed portfolios, these ESG-centric ones allow advisors to outsource investment management activities so they can have more time to spend on financial planning and other customized services for clients.
The portfolios are available immediately for advisors through Morningstar’s turnkey asset management platform (TAMP) and will expand to third-party platforms in the future.
“Advisors are increasingly looking to address the environmental, social, and governance concerns of a growing number of investors. These new ESG portfolios help investors meet their financial goals in a way that’s aligned with their values,” said Paul Arnold, portfolio manager of the Morningstar ESG Asset Allocation Portfolios, in a statement. “The goal of these portfolios is to achieve long-term financial goals while incorporating sustainable values.”
Morningstar announced the new portfolios at its investment conference in Chicago.
There are five portfolios in the series, all long-term core portfolios which range from conservative to aggressive. Four are comprised of both stock and bond ETFs and mutual funds, and the fifth, the most aggressive, can hold as much as 100% stocks or as little as 80% stocks with fixed income making up the rest.