Advisor Partners, a provider of outsourced asset management solutions, has created a fossil-fuel-free portfolio and a diversity portfolio, the firm announced Friday.
The new portfolios are part of the expansion of the firm’s socially responsible investing offerings, which are designed to address investors’ desire to align their investment strategies with their personal values, Advisor Partners says.
“We work closely with financial advisors, wealth managers and family offices to structure investment portfolios that address the specific needs of their clients,” says President and Chief Investment Officer Daniel S. Kern. “These new portfolios will enable us to better serve the ever-growing desire for SRI solutions.”
Advisor Partners has created both U.S. equity portfolios and American Depository Receipt (ADR) portfolios, which are issued by a bank on behalf of a foreign company whose equity serves as the underlying asset, that exclude fossil fuel companies. The portfolios also reflect inclusionary and exclusionary aspects of SRI investment, excluding companies that have unfavorable SRI characteristics and including companies with favorable SRI characteristics.
The diversity or empowerment portfolio concentrates on companies that have favorable diversity characteristics, such as a higher proportion of women and minorities in senior management and on the board. Research indicating that companies with greater gender diversity on boards and in management often experience improved business results was an important motivating factor behind the development of the empowerment portfolio, Asset Partners says.