Robo firm Wealthify launches ethical portfolios

Concept of green plant grow on British Pound currency note.Robo-investment service Wealthify has launched ethical investment portfolios that can be opened with a £1 investment.

Wealthify now offers five ethical portfolios investing in up to 25 funds.

The company’s chief investment officer and co-founder Michelle Pearce says the launch is the firm’s response to customer demand for investment options that do not compromise their values.

Pearce says: “We want to democratise investing and give our customers the opportunity to invest in line with their principles.”

Wealthify’s new investment portfolios use active funds from Edentree, Kames Capital, Liontrust, Legal & General, Royal London, UBS, Stewart Investors, iShares, and Vanguard.

These providers will give negative screening for “sin stocks”, positive screening for companies with exemplary ESG practices and identify improving companies.

Continuous underwhelming ESG performance would disqualify the company from the fund. Fund providers will also use the shareholders influence and vote to further elevate companies’ EGS standards.

Aviva buys majority stake in robo-adviser Wealthify

Pearce says: “All fund providers are signatories of the Principles of Responsible Investing, the world’s leading proponent of responsible investing. Additionally, we know these fund managers can effect positive ongoing change in ESG standards via proactive shareholder involvement.”

Wealthify’s investment team will also monitor the underlying investments to ensure that the investor’s money is used to fund companies with ethical investment standards.

Will AI change the face of financial advice?

Wealthify cites extensive researching and monitoring companies’ ethical principles as a reason behind investment higher charges for ethical funds (0.54 per cent compared to 0.21 per cent for standard plans).

Based on a £10k investment Ethical plans  
Cautious Tentative Confident Ambitious Adventurous Average
Fund Charges 0.42% 0.46% 0.52% 0.6% 0.69% 0.54%
Spread Costs 0.003% 0.02% 0.03% 0.04% 0.05% 0.03%
Total cost incl. annual management Fee (0.7%) 1.12% 1.18% 1.25% 1.34% 1.44% 1.27%
  Standard plans  
Fund Charges 0.18% 0.21% 0.24% 0.27% 0.29% 0.24%*
Spread Costs 0.12% 0.13% 0.13% 0.15% 0.16% 0.14%
Total cost incl. annual management Fee (0.7%) 1.0% 1.04% 1.07% 1.12% 1.15% 1.08%

Source: Wealthify

*The average fund cost across all Wealthify plans is 0.21 per cent. The company says 0.24 per cent is the average across higher value plans (above £2,000).


Magnifying glass in front of an open newspaper with paper houses. Concept of rent, search, purchase real estate.

Pensions watchdog closely monitoring House of Fraser deal

The Pensions Regulator is following Mike Ashley’s acquisition of House of Fraser closely after the sale left thousands of staff facing possible cuts to their pensions. On Friday the retail tycoon’s Sports Direct business agreed to purchase the struggling chain for £90m through a pre-pack administration arrangement. This is an insolvency mechanism where a company […]

Who will battle it out to buy platform tech firm FNZ?

The advised platform market has seen significant change in company ownership in recent years, either through acquisitions or businesses opting to float on the stock exchange. Now the spotlight is on adviser platform technology firms, with speculation currently focused on Edinburgh-headquartered FNZ. A Sky News report last month said FNZ’s two private equity backers General […]


Economy undeterred by Brexit clouds

Britain’s economy rebounded in the second quarter despite Brexit uncertainty according to Office for National Statistics figures published today. GDP expanded by 0.4 per cent in April to June, but on an annual basis the growth rate picked up 1.3 per cent in the second quarter. This was only a touch above a nearly six-year low […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm