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Adviser reflections: ESG investments add alpha and reduce risk

“So it’s about diversification, and we have all those regular conversations, but there’s an added level where we take into account the client’s values and making sure their portfolio’s aligned with those things. We say definitely, we are not about sacrificing returns. We actually try and outperform as much as we possibly can. And we’re in the business of finance and making money for our clients.” Michelle Brisbane

“Looking at it from a financial analysis point of view, it all makes sense, it’s all financially logical. The circular economy for example is all about reuse, which is about efficiency, and efficiency improves the bottom line.” Claudia Mah.

“I think clients really understand impact investing to be having your cake and eating it too. So, it’s having the beautiful returns we would expect for the clients that we deal with, who are all looking for market returns or better. And then there is the additionality of creating positive and measurably articulated change through what they’re invested in.” Karen McLeod.

“There is a pure belief, from my perspective that my darkest green portfolio outperforms any other portfolio I’ve seen so far. And besides, If I said to you, you can get X% on your bond portfolio, or you can get X% on your bond portfolio AND provide a house for 450 homeless women to get back on their feet, what are you going to choose?” Nathan Fradley.

“Looking at it from a risk management perspective, we believe returns from sustainably invested funds will be better risk-adjusted returns because the industries which are not part of our portfolio just don’t have a future. And if it’s not sustainable, it’s unsustainable.” David Graham.

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