UK-based investment management firm Portfoliometrix has published a white paper collecting all the information financial advisers and planners should know about environmental, social and governance (ESG) investments.
Its ‘ESG in Investing: everything you wanted to know but were too afraid to ask’ provides all the facts professionals need to be aware of when advising clients on this fast-growing section of the investment landscape, the firm said.
The document covers:
- The ESG acronym and associated jargon;
- The history and size of the market;
- The characteristics of responsible investments;
- The performance of ESG portfolios; and,
- Forthcoming regulation in the advice sector.
Clear knowledge
Nic Spicer, UK head of investments at PortfolioMetrix, said: “There is so much noise about ESG at the moment that it’s difficult for advisers and their clients to get a clear idea of how all the pieces of responsible investing fit together.
“In our view, it is crucial advisers have all the facts, chiefly so they can guide their clients to portfolios that match their appetites for responsible investing. It is also very important because regulation is coming imminently, that will mean advisers are at risk if they are not properly prepared and equipped to advise on this area.
“Our white paper addresses the key areas of ESG within investment, and provides practical information and guidance to help advisers assist their clients through this complex topic.”
But, Spicer said, the white paper is just a first step for planners, because the more meaningful conversations will need to happen with their customers.
“How much impact do clients want to have with their investments, and how might those choices affect the long-term performance? What is greenwashing and how to recognise it?
“These are all elements we cover in our paper and I hope it helps provide clarity for any adviser looking to extend their knowledge in the ESG area,” he added.
