Mainstreet Partners and Allfunds launch sustainable portfolio construction tool

Supporting asset managers to align with Article 8 or 9


Michael Nelson

Mainstreet Partners and Allfunds have launched a sustainable portfolio construction tool designed to deliver comprehensive data insights for asset managers and wealth managers in line with the frameworks of the European Union’s Sustainable Finance Disclosure Regulation (SFDR).

The Sustainability Navigator has two main functions; first, it gives the user the option to upload existing portfolios and gain instant access to a detailed report and breakdowns of several data points including the percentage of sustainable investments, ESG ratings, presence of controversies and taxonomy alignment.

Second, the user can build customised portfolios from scratch and in line with Article 8 and 9 of the SFDR framework, using a universe of over 8,500 issuers. Investors can apply various filtering criteria based on best ESG screening practices, including controversies, PAIs and alignment to the UN SDGs. This empowers them to build portfolios and universes that align with their specific sustainability goals and objectives, while obtaining comprehensive ESG results for each selected issuer.

Juan de Palacios, chief strategy and product officer at Allfunds, said: “We are thrilled to release this tool, showcasing the fruitful collaboration that has evolved since we announced Allfunds’ acquisition of MainStreet at the beginning of 2023. This undertaking aligns perfectly with our ambition to leverage MainStreet Partners’ leading sustainable data and expertise and integrate it seamlessly into Allfunds’ one-stop-shop approach.”

According to the partners, the key features of the Sustainability Navigator include comprehensive data integration; real-time analysis and simulation; streamlined sustainable portfolio construction; and an enhanced user experience.

Simone Gallo, managing director at MainStreet Partners, added: “The development of the Sustainability Navigator will bring MainStreet’s expertise to a wider audience. Together we have built a unique digital tool to automatise the main needs of several investors that want to build an Article 8 product or transform an Article 8 into and Article 9 product.

“Investors often ask how they build and audit several sustainable universes using thousands of data points that speak the language of the SFDR framework, in an efficient and cost-effective way. This new tool answers that question.”

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