Advisers set to boost investment in ESG strategies

Nearly two thirds of advisers plan to allocate more money to environmental, social and governance strategies next year, a new survey finds.

Out of 100 wealth managers and advisers polled, Royal London Asset Management found 65 per cent would allocate to ESG investments with 70 per cent of the total saying ESG elements are taken into account when selecting fund managers.

Many of the largest industry players are now incorporating ESG principles into their investment processes.

The survey comes as Money Marketing recently reported that not all advisers have been positive about recommending them, however.

Royal London Asset Management chief distribution officer Rob Williams says:
“As the [ESG] sector becomes increasingly competitive, we think advisers will begin to dig much deeper into what these approaches really mean for the underlying funds.”

Williams says: “The debate is already shifting rapidly from whether a fund simply considers ESG issues, to a more sophisticated discussion about how investment strategies implement these considerations on a practical level.”

Elsewhere in the survey, RLAM found that only 11 per cent of the interviewees now have concerns about a Brexit impact on their investments compared to double that proportion in a 2017 survey from the asset manager.

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