Talking Point 

How to help clients approach sustainable investing

  • Understand what are the different definitions around the concept of sustainable or ethical investing.
  • Learn how to help different clients navigate the different approaches to sustainable investing.
  • Consider what type of data there is available to help advisers make a selection.
CPD
Approx.30min
What to know about sustainable investing
As sustainable and ethical investing enters the mainstream, there are various approaches for clients to take
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This year's Good Money Week, which ran from September 29 to October 5, highlighted just how many asset management groups have widened their offering in the ethical, sustainable or socially responsible investing (SRI) space.

While funds which invest ethically or with environmental, social and governance (ESG) issues factored into their strategy have been slowly but surely gaining momentum, there are still those advisers and investors who do not believe they have quite entered the mainstream.

What is clear, however, is that there is a growing interest among clients of all ages in ethical and sustainable approaches to investing.

The Schroders Global Investor Study 2018 reports that 56 per cent of UK investors have increased their allocation to sustainable investments in the past five years.

But Jessica Ground, global head of stewardship at Schroders, admits: "Clearly, barriers still remain preventing investors from embracing this approach, highlighting that the availability, transparency and advice around these funds requires improving."

What are the different definitions around these types of approaches to investing? 

How can advisers help their clients to navigate the offerings in the ethical, sustainable, ESG and responsible investing space?

Talking Point, in association with Schroders, considers how advisers can help clients to construct a sustainable porfolio, given the range of products available.

The report, which can be read by clicking the link in the image above, qualifies for an indicative 30 minutes' worth of CPD. 

eleanor.duncan@ft.com

CPD
Approx.30min
  1. Which one of the labels does Mr Jenkins says has "fallen by the wayside"?

  2. Typical investors do not tend to be which demographic, according to the article?

  3. Mr French describes the best in class approach as "when a fund selects a company that has better ethical and sustainable policies than industry peers." True or false?

  4. According to Mr Ditchfield, many in the financial industry have decided sustainable investing is what?

  5. How many funds qualify for inclusion in a sustainable portfolio, according to the article?

  6. Mr French says the most common and traditional process used by ethical and sustainable funds is called what?

Nearly There…

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

You should now know…

  • Understand what are the different definitions around the concept of sustainable or ethical investing.
  • Learn how to help different clients navigate the different approaches to sustainable investing.
  • Consider what type of data there is available to help advisers make a selection.

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