However, there are many sub-strata within the SRI investment universe, with different means of focusing capital and it is important advisers know their green onions when a client says they want to invest “ethically” or “responsibly”.
Furthermore, not only did the FSA in its final guidance paper 12/15 cite SRI as an example as a ‘relevant market’ for independent advice, but offering SRI advice is also regarded as international best practice as part of ISO22222.
Adding a specialisation in this area gives advisers the chance to demonstrate the value of getting personalised, bespoke financial advice and also offers the chance to get a lot closer to individual clients.
This guide examines the different shades of ethical, sustainable and responsible investing clients might exhibit; the pros and cons of SRI for advisers and clients; varieties of SRI product available; what can drive ethical investment performance; how an investment adviser should build a SRI portfolio; and some recent trends in this sector.
Supplementary material supplied by Julia Dreblow, founder of sriServices; Mike Appleby, investment manager at Alliance Trust; and Olivia Bowen, director and financial adviser at Gaeia.