Newly-launched wealth manager Pangea Impact Investment is aiming to build model portfolios using funds that are actively looking to improve society and the environment.
The firm has been set up by ex-Blackrock vice president Nick Stoop, who was most recently director of UK sales at asset manager Alma Capital.
The news follows earlier reporting from Portfolio Adviser that Aviva Investors and Vanguard are also channelling their energy and efforts into model portfolios amid an expected rise in demand.
Research from Cerulli, published earlier this month, shows 46% of UK wealth managers plan on using model portfolios more extensively over the next 12 to 24 months, with just 2% intending to decrease their use over the next two years.
A regulatory home
Pangea Impact Investment will provide impact investment services to clients seeking solutions to tackle climate change and social inequality.
The firm believes that impact investment is an “evolution” of ESG investing for clients who want “to make a real difference”.
The firm said, rather than limiting investment to firms with “high ESG metrics”, impact investors target companies that actively try to improve the environment and society. It added that “ESG has been the investment flavour of the last few years”.
The company has joined forces with P1 Investment Management, which will offer a regulatory home for Pangea to conduct business as well as a platform infrastructure for Pangea to manage its clients.
Lack of solutions
Stoop said: “Three years ago, I was looking for a truly aligned positively impactful solution for my two UK workplace pension portfolios.
“The solution I sought was not available and so I decided to try and build it. A timely conversation with P1 Investment Management provided just the catalyst I required to bring Pangea to life. It continues to be a great privilege working with the team at P1 Investment Management as I bring Pangea’s solution to the UK marketplace.”
James Priday, chief executive of P1 Investment Management, added: “Nick has a clear vision which aligns perfectly with our in-house ethical and sustainable investment expertise. I am thrilled that we can support Nick in launching Pangea by providing both a regulatory home and the investment technology to operate his services.”
This article first appeared on our sister title International Adviser.