ESG Fund Factsheet

For adviser use only

Blackfinch Multi-Asset Range

Classification: Sustainable
Management style: Blended

Introduction

Blackfinch have a range of three equity targeted multi-asset funds that are mapped to several risk ratings agencies. The range will cover the risk appetite for most cautious to medium risk clients.

Name Launch Date IA Sector Portfolio OCF* Fund Size (m)
VT Blackfinch Defensive F Acc 01/05/2020 Mixed Investment 0-35% 1.03% 16
VT Blackfinch Cautious F Acc 01/05/2020 Mixed Investment 20-60% 1.10% 37
VT Blackfinch Balanced F Acc 01/05/2020 Mixed Investment 40-85% 1.15% 33

About Blackfinch

The Blackfinch Asset Management portfolios provide straightforward investment portfolios with clear, understandable objectives. The Blackfinch multi-asset portfolios are actively managed and globally diversified. They are available in either a unitised fund or MPS structure. All the portfolios incorporate to environmental, social and governance (ESG) factor analysis as part of the investment process to help mitigate risk and generate returns. Inflation-linked return targets mean they’re easier for clients to understand and align with investor objectives. Their portfolios are only available through advisers and on a range of third-party platforms.

Assets under management*

£86m

Assets under management within the multi-asset range

* as at 01/01/2022

ESG Process

Blackfinch strongly believe ESG is a key consideration for strong future business performance. Companies with high ESG attention will appeal more to consumers whereas companies that ignore this responsibility will face a shrinking customer base.

Whilst this range of fund isn’t actively marketed as ESG, it is incorporate into all aspects of Blackfinch and they don’t offer ESG or non-ESG versions, all factor in ESG.

Blackfinch focus on the UN Global Compact principles. To determine companies for their portfolios, they must meet these principles.

Positive Screening

Positive screening is paramount in Blackfinch’s ESG investment process. Choosing firms that are environmentally friendly and operate socially responsible business practices. The fund managers will exercise their powers as shareholders to help encourage the companies to improve their ESG impact.

Exclusion Policies

Negative screening in these portfolios is limited, however, they will automatically screen out companies that are in breach of the UN Global Compact Principles.

Key Themes

  • Renewable energy
  • Education
  • Social housing
  • Sustainable waste management
  • Renewable material production

Cost

The average OCF over the full range and share classes is 1.08%. This is higher than some of the alternatives that offer blended portfolios.

Investment Performance

The fund range performance is measured against against the sector average which is the Mixed Investment sectors elative to the risk profile of the funds.

The funds have just reached their 2 year anniversary. Measuring cumulative performance, all funds in the range are underperforming their sector average. Performance was measured up to 31st May 2022.

Past performance is not a guide to future performance.

Platform availability

BlackFinch Multi-Asset funds are available on the following platforms:

  • Abrdn Wrap
  • Abrdn Elevate
  • Advance – Embark
  • AEGON
  • AJ Bell
  • Ascentric
  • Aviva
  • Embark
  • Fidelity
  • Hubwise
  • James Hay
  • Novia
  • Nucleus
  • Transact

Risk tools

BlackFinch Multi-Asset funds are mapped to the following risk tools:

  • Dynamic Planner
  • Defaqto
  • EValue

Supporting documents

Tenet Opinion

At a company level, Blackfinch have incorporated ESG factors into all aspects of their business. They don’t offer ESG and non-ESG versions of their investments as they believe companies that don’t factor in ESG criteria’s to their business will be negatively impacted financially.

They offer a fairly limited range of three growth funds which cover the cautious to balanced investors, the more adventurous investors may not be suitable for these funds.

The funds exclude some stocks breaching the principles mentioned above and positive screening is paramount. The funds therefore won’t be suitable for clients with strict exclusion criteria but are a great option for clients looking to encourage companies to improve their ESG criteria on a whole and positively impacting society. The passive elements help to keep costs down on the funds which may also factor into some clients concerns.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).