Responsible Investing Portfolio Construction Service for Taxable accounts
Responsible investing can entail one or more of the following:
- ESG Integration
- Sustainability focus
- Impact Investing
How do you know you are using the right tool for the job?
For Pension Accounts, please See here or please complete this form
Taxable Investment Accounts
This service has been created specifically for taxable investors in Ireland to provide multiple combinations of taxable investment portfolios which are designed to capture the following potential benefits:
- The tax treatment of securities, as distinct from investment funds in Ireland, giving the equity component Income Tax (Marginal Rate) and Capital Gains tax (33% Tax year 2021) treatment rather than "Exit Tax" (41% Tax year 2021).
- Through a Euro Hedged UCITS fund, to have the ability to invest in a diverse, portfolio of global fixed-income securities, selected according to PIMCO’s internal ESG screening process. The fund invests primarily in a diversified portfolio of investment grade bonds from around the world, on the basis of PIMCO’s ESG exclusions, evaluation and engagement decisions. Designed to provide stability and allow advisers to mix equities and fixed interest in exact proportions to meet the need, willingness and capacity for risk of their client.
- To invest in a composite portfolio of securities designed to replicate a market capitalisation weighted stock portfolio and provide beta or market returns but with a sustainability filter applied to seek to achieve the objective of zero traditional energy companies.
- The ability to progressively exclude certain funds from the portfolio in order to dial out certain controversial stocks which might not meet the exacting investment requirements of certain investors. An example might be Safran (military aircraft)
- The ability to blend these three portfolios in any desired proportion in order to meet the exact requirements of a particular innvestor with multiple combinations of portfolios available to choose from.
- A "buy and hold" portfolio in order to minimise ongoing transactions and taxable events
Example portfolio for illustrative purposes
SRI Advice Process
This advice process is intended to help investors to select a portfolio which more accurately meets their particular preferences more effectively.
This process is intended to compliment not replace our obligations under the Consumer Protection Code and all investors will be issued with a Statement of Suitability prior to making an investment.
The process is intended to assist investors to determine which aspects of the generic catch all term "Responsible investing" are most relevant to them.
The advice process has been designed specifically for taxable accounts held with Conexim Advisors Ltd and is not suitable for any other investment platform.
Please get in touch if you have any questions
Step 1. Identify your tax status
Understanding the taxation of investments in Ireland
- Investors in these portfolios must self-assess for tax purposes. And all investors must complete and return their tax return (Form 11) by 31 October in the following tax year. Taxation is the responsibility of the end-investor. The Central Bank of Ireland does not regulate tax advice
- The service is intended for larger portfolios (€100,000+) due to the underlying charges applicable for dealing and execution. For smaller accounts investors should consider if a Life Assurance contract might be more suitable
Step 2.Our policy on Sustainability
With reference to the impact of climate change, Larry Fink, Chairman and CEO of BlackRock, stated;
‘We are on the edge of a fundamental reshaping of finance’
The Sustainable Finance Disclosure Regulation (“SFDR”) effective on the 10th of March 2021 was introduced by the European Commission alongside (the “Taxonomy Regulation”) and (the “Low Carbon and Positive Impacts Benchmarks Regulation”) as part of a package of legislative measures arising from the European Commission’s Action Plan on Sustainable Finance.
The SFDR sets out harmonised rules on transparency and aims to include environmental, social and governance (ESG) “sustainability” considerations and risks in the decision-making process of investors and asset managers in a consistent manner across the EU financial services sector. A sustainable investment product is where a product is sold as promoting environmental or social characteristics. It is envisaged that greater transparency and sustainability-related information will enable investors to compare financial products and to make informed investment decisions about ESG products.
A key focus of the European Commission Action plan is Sustainable Finance and recital 19 of the regulation state;
“The consideration of sustainability factors in the investment decision-making and advisory processes can realise benefits beyond financial markets. It can increase the resilience of the real economy and the stability of the financial system. In so doing, it can ultimately impact on the risk-return of financial products.”
When providing advice, the firm considers the adverse impact of investment decisions on suitability. As part of our research and assessment of products, the firm will examine the Product Providers literature to compare financial products and to make informed investment decisions about ESG products. The firm will always act in the client’s best interests and keep clients informed accordingly. The consideration of sustainability risks can impact on the relative cost, relative risk and both positively and negatively impact potential returns of financial products.
Step 3: Identify your SRI Aims
Aim: To identify relevant SRI strategies
Action: Please complete the SRI Stylefinder Questionnaire
For investors with an interest in SRI, green or ethical investment we to need identify what areas of SRI most appeal to them in order to match a suitable portfolio of investments.
To assist with this process, please complete a “supplementary SRI fact find questionnaire” – which comprises tick box ‘high level’ indicator questions.
Clients should select the phrases they feel most closely represent their ethical, social, environmental or religious views or ‘SRI aims’.
The tool uses this information to identify the three best fit SRI Styles (EcoStyles).
SRI Style Finder tool
The 'SRI StyleFinder' Questionnaire is a tool which helps you identify your client's preferred 'sustainable and responsible' or 'ethical' investment Style(s) and helps you to prepare for discussing this area with an investor.
Click here to access the questionnaire
The SRI StyleFinder is free to use. It is provided for information purposes only and does not constitute financial advice. The providers of this questionnaire 'sriServices/Fund EcoMarket' are not regulated or authorised to offer financial advice.
Although this portfolio service does not currently support all of the possible EcoStyles identified, we are able to dial up the “Ethical filter” for those clients with a clear Ethical Investment preference.
To access our guide
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