Industry Moves Spotlight: Ethos Managed Portfolios

Author Annie Lillico Lewis

Expert Reviewer Paul Kearney, CPA, CFP®

With the recent launch of Ethos Managed Portfolios, Penny Pryor from Industry Moves sat down with our founder and CEO, Paul Kearney. They chat all things responsible investment and delve into the features of the new Ethos suite.

Good investment as responsible investment.

“The portfolios are the result of an extensive research and consultative process and are an expression of the firm’s long-held belief that good investment is responsible investment,” writes Pryor.

She goes on to reflect on the the five managed investment options, across the range of risk preferences; from defensive to high growth.

The full client story deep dives: firstly, into Kearney Group’s attraction to sustainable managed portfolios. Then Pryor looks into our fund manager selection process. Finally, she reflects on current client demand and our pricing model.

An adviser’s moral obligation.

Pryor catches on quickly; noting our belief that environment, social and governance (‘ESG’) factors are the backbone of a good investment strategy. Moreover, that we also believe it’s a financial adviser’s moral obligation to their clients to provide this kind of service and analysis, in the modern environment.

“There is a school of thought, and perhaps maybe even the way advisers have been trained is, to get the best return for clients as possible,” says Paul.

“But that relies on a very narrow definition of wealth and a very narrow definition of what is best for the community.”

Beyond the obvious good behaviours that ESG highlights, it also serves as a great warning bell. Repeat failure to meet ESG hurdles should tip off fund managers and investors alike, warning both of poor corporate practices and unnecessary risk.

And, as any skilled adviser will tell you, risk mitigation is an important part of a sound investment strategy.

Change required advocacy.

Building out our ESG-first portfolios threw up many roadblocks.

“I was surprised how we needed to lean personally into the people we work with,” says Paul.

Referencing fund manager selection, he says “I needed to insist, people were happy to look, but it required advocacy to move in the direction we want to go.”

Limited investment product options, lacking global standards, poor data and reporting also presented challenges along the way.

Despite all of this, Ethos Portfolios are here and doing great amounts of good already. You can learn all about Ethos and access the most current results and portfolio reports here.

Or read the full article in Industry Moves on Ethos Portfolios.