Advisers seeing green with clients…but some providers make them see red
By Dave Chessell - April 19, 2021
According to a recent article in Investment Week, advisers prefer badged/branded ESG funds to standard ones that claim to have ESG as part of their DNA.
As the article points out, there are a number of reasons for this but perhaps the most likely is that the majority of advisers are at an early stage of their ESG journey with clients, so being able to offer them something that is clearly ESG as part of their portfolio mix is a good place to start.
Of course, some advisers are well ahead of the curve. About five years ago we were approached by some of our adviser partners and asked if we could offer an ethical option.
This kick-started a project that led to the launch of a range of PortfolioMetrix portfolios under the Ethical Emphasis name. The work our investment team did meant we were able to deliver what our partners wanted yet remain consistent with the principles of our investment process. This Ethical Emphasis range has now been rebranded Sustainable World…more about that later on.
Responsible Investment Policy
The work didn’t stop with the launch of our portfolios. Since then, we’ve developed a Responsible Investment Policy that influences our approach across our core portfolios too. It’s something that our investment team is passionate about and we are grateful to our partners for showing us there was an appetite for this type of investment long before it became as fashionable as it is today.
According to the IW article, there is some scepticism among advisers that providers are doing what they promise. This is something we take very seriously. We are signatories to the United Nations Principles for Responsible Investment (UNPRI), which defines responsible investment as a strategy and practice to incorporate environmental, social and governance (ESG) factors in investment decisions and active ownership.
To help advisers understand what our Sustainable World portfolios are all about and to help them communicate this with their clients, we’ve produced a new guide.
In our latest webinar, Nic Spicer, our UK Head of Investments and Investment Analyst Oliver Jones, discussed our recently launched Sustainable World Client Guide as well as becoming a UNPRI signatory. The session will be invaluable for any advisers who are keen to learn more about what happens under the bonnet of our dedicated ESG portfolios.