What to look out for when advising on ESG

Impact Lens, a new agency which aims to demystify the complexities of responsible investing, has tipped Montanaro Better World, Stewart Investors Asia Pacific Sustainability, and Rathbone Ethical Bond funds as three of the best picks for advisers with clients opting for ESG alternatives at the moment.

According to Impact Lens, the Montanaro Better World fund measures positive impact using an ‘Impact Calculator’ and seeks to invest in companies that solve sustainability challenges.

The Stewart Investors Asia Pacific Sustainability fund assesses each potential investment for social usefulness and environmental efficiency while Rathbone’s Ethical Bond fund only invests in issuers with environmental and socially positive traits.

All three funds returned at least 6 per cent in the year to October 4 and the Stewart Investors Asia Pacific Sustainability fund returned 10.85 per cent over the timeframe.

Impact Lens selected the funds using its system that rates each fund on its sustainability aims, ESG integration, stewardship, engagement and governance.

The agency launched earlier this year dealing exclusively with Helm Godfrey for the first 12 months while the brand is established.

It will then launch to the rest of the advice market.

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