Responsible
Reflections:
Adviser Insights
from the World of
ESG Investing
Responsible
Reflections:
Adviser Insights
from the World of
ESG Investing
- Introductions
- Responsible Investing and ESG integration defined
- Consumer interest is strong and growing
- Fund flows into ESG and other responsibly managed investments
- Adviser Reflection - ‘Clients have eyes wide open on these topics’
- Adviser reflection - ESG investing is for all ages
- Adviser reflection ‘Focus on economic sustainability’
- Manager Reflections - exponential growth in green bond issuance
- Adviser Reflections - ESG options now available across all asset classes
- Companies with poor ESG records pay a performance penalty
- Adviser reflections: ESG investments add alpha and reduce risk
- Responsible Investing is about more than just climate
- Manager Reflection: A balanced approach to ESG
- The challenges in looking under the hood
- Adviser reflection: navigating the nuances of greenwashing
- Questions to ask of an ESG manager
- ASIC guidance on ESG and advice processes
- Adviser reflections - best interests and financial stewardship
- In summary
In summary
01
As a consequence of increased awareness, the looming intergenerational wealth transfer, and the ageing of Millennials, advisers will encounter more demand for ESG options.
02
ESG investing is no longer a niche category, with funds flow into sustainable funds outstripping flows into traditional investments in recent years.
03
The ubiquity of ESG investing reflects not only increasingly powerful social and regulatory factors, but also the superior investment returns achieved by funds managed sustainably.
04
Rather than being a homogenous, one size fits all framework, Responsible Investing is an umbrella under which sits a spectrum of different methodologies reflecting the different objectives and preferences of investors.
05
Advisers should identify whether there are any gaps between increasing demand for Responsible offerings by their clients, and their ability to make them available for client consideration.
06
Regulatory guidance around Responsible Investing advice is likely to evolve, as it has in other corporate sectors, and advisers should keep abreast of any changes.
In summary, an increasing desire to make a positive impact on the planet is being seen across governments, businesses, and individuals. This is being reflected in both the increasing incorporation of ESG principles into day-to-day business management, and in the growing popularity of ESG investment options. As this momentum continues to grow, financial advisers have an ideal opportunity to engage with both new and existing clients, to facilitate outcomes which can meet both ethical and financial objectives and adding a new dimension to the value of their advice.
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