Darren Cooke, chartered financial planner at Red Circle Financial Planning, agreed, but thought the fact ESG funds were primarily active funds so advisers who were passive based found it harder to find options was also a key reason for the slow take up.
Mr Cooke also thought there was a lack of demand for ESG options from clients, but noted there would likely be more demand if he were to proactively ask if they wanted ESG investments.
He added: “I think that is a self fulfilling prophecy though, because if I ask clients if they want an ESG investment, of course they are going to say yes.
“Because who is going to sit there and say 'no actually I don't care about the environment or ethics, stick it all in oil, guns, alcohol and tobacco'?”
But Mr Cooke thought the fact clients are not proactive about ESG products was proof of a lack of demand.
Parmenion is targeting £1bn in ethical investments over the next three years from its current £325m assets under management.
The funds were likely to grow to about £650m - £700m from natural growth, Mr Gilbert said, but the rest of the campaign is set to involve webinars and myth busting articles to raise awareness about ethical investing.
Parmenion will also launch passive portfolios for discretionary fund managers to help reach the target.
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