InvestmentsMar 23 2020

Clients continue to drive ESG growth amid turmoil

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Clients continue to drive ESG growth amid turmoil

Investors are still pushing for environmental, social and governance strategies, despite the recent market turmoil. 

According to Daniel Rodwell, chief executive of GrowthInvest, long-term trends such as responsible investing were still clearly marked among clients. 

He said: 'We are seeing the market moving increasingly towards responsible investing, driven by a rising commitment to sustainability and a next-generation approach to wealth management."

The spreading coronavirus crisis has caused global markets to tumble as governments across the world shut down borders, locked down domestic travel and closed sports, leisure facilities, pubs and restaurants.

Since the start of 2020 the FTSE 100 has fallen by 31 per cent while the S&P 500 has dropped by 29 per cent over the same period. The Euro Stoxx 50 is down 32 per cent.

Mr Rodwell's comments came as UK impact investing received a boost with the launch last week of the Boundary Capital Impact fund.

Called the Impact Life Fund, the managers will target investments they perceive to be businesses with disruptive technologies, and which have the potential to positively impact at least 100 million human lives.

The fund is also targeting a three times return overall over five years, and has an enterprise investment scheme structure to allow investors to gain from tax breaks as well as the underlying economic and other benefits.

Mr Rodwell said the fund has been made available for clients on the GrowthInvest platform already.

He commented: "We are delighted that the Boundary Capital Impact Fund is available on the GrowthInvest platform as part of our commitment to offering impact and ESG investment products for financial advisers and their clients." 

Last year, the UK Impact Institute was launched, which brought together the Implementation Taskforce for Growing a Culture of Social Impact Investing in the UK, led by Dame Elizabeth Corley, former chief executive of Allianz Global Investors; and the UK National Advisory Board on impact investing, led by Sir Harvey McGrath, former chairman of Man Group and Prudential, and chairman of Big Society Capital.

It is part of a global network of national advisory boards, grouped together in the Global Steering Group for impact investment.

simoney.kyriakou@ft.com