Zenith features Kearney Group’s new Ethos Managed Portfolios.
Kearney Group founder and CEO, Paul Kearney, talks about responsible investments and teaming up with Zenith on ESG-first portfolios.
In Zenith’s latest Insights publication, Paul reflects on Kearney Group’s Ethos Managed Portfolios and the two Groups’ recent partnership.
The primary goal of the Ethos suite, Paul says, was “to create a portfolio that was a high-performer because of its do-gooder-ness, not in spite of it.”
He also gives special attention to the firm’s Classification Model which includes a “scoring system [designed to] advance both the breadth and depth of ESG integration across the Ethos suite.”
The Model ranks and identifies areas in which we can:
- increase the number of Ethos funds that are invested under a responsible investment regime (quantity / breadth of ESG integration); and
- gradually take up more regenerative (not just sustainable) forms of investing (quality / depth of ESG integration). For example, where two funds are considered otherwise equal, we prioritise the fund with the most aggressive ESG profile.
Much needed to improve the ESG sector.
Paul notes that whilst pleased with what’s been achieved so far, “there is still much to do”. This viewpoint features heavily in his recent ESG Q&A as well.
In closing, Paul calls on the Responsible Investment industry, including both fund managers and ratings houses, to rise to the challenge of quickly improving transparency. He stresses that high-quality data and reporting are desperately needed to transform the ESG sector.
He also urges fellow Financial Advisers to look carefully “into the underlying policies and commitments made by funds (including demanding of them, full disclosures of portfolio holdings, at least in line with our OECD peers).”
Paul says that Financial Advisers must “seize the opportunity to progress this conversation, to demand more and to affect change by voting with our feet and our dollars.”