Investment Income CPD Course  

How ESG strategies can help boost income

  • To understand the challenges when finding income.
  • To be able to explain the potential dilemma for investors wanting ESG investments.
  • To ascertain how best to help clients gain income within their ethical criteria.
CPD
Approx.30min

He comments: “We have seen a steady growth in ESG enquiries from clients – it is clearly a growing trend and that has to be a good thing.

"Advisers have to exercise caution, though. Just because it is a good thing does not mean that it is without risk and that has to be fully explained to clients.” 

Further raising adviser awareness of ESG is key to overcoming concerns, according to Ms Ashford, who says: “Some financial advisers are quite sceptical about how they can invest their clients’ money in ESG and also get a good return.

"It is important that they are aware that there is evidence to support this – the more they are aware of this, the more their confidence will grow.” She adds: “It is becoming more and more established that portfolios which factor in ESG can outperform those that don’t. The more evidence there is, the more it will help shape people’s attitudes towards ESG.”

Ms Ashford also looks beyond immediate returns, as she says:  “There is not just room in the market for ESG funds delivering an income stream at the moment – there is room for those whose sole purpose is to achieve a positive impact, for instance game-changers such as electric vehicles.

"While they may not be paying a dividend at the moment, they have huge potential. The same goes for clean energy and sustainable transport.”

She concludes: “Historically, the perception was that if you are investing in the social good, you had to forego financial returns, but that is not the case now. Now, you can have both. It’s not a trade off any more.” 

Fiona Nicolson is a freelance financial journalist

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. According to Mr David, what can limit opportunity?

  2. Mr David says the greater the degree of screening, the more the portfolio shifts from what to what?

  3. Ms Ground says sustainable companies have healthy relationships with whom?

  4. Assessing how a company manages ESG gives an insight into what, according to Mr Appleby?

  5. What does Mr Glassey believe an ethical long-term outlook can do?

  6. What is the warning Mr Churchouse gives to advisers?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • To understand the challenges when finding income.
  • To be able to explain the potential dilemma for investors wanting ESG investments.
  • To ascertain how best to help clients gain income within their ethical criteria.

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