ESG Investing  

Manager on how to navigate ESG investing with clients

Risk rated across cautious, balanced and growth, net of all costs the funds returned 12.6, 14 and 14.1 per cent respectively in their first year since launch.

The cost of the actively managed sustainable range is capped at 0.39 per cent, and the managers focus on strategic asset allocation and sustainable stock selection.

Within its sustainable aims, the funds use an ‘avoid, invest, improve’ strategy. 

The range ‘avoids’ weapons, tobacco, fossil fuels and companies with severe breaches of UN conduct, and aims to ‘invest’ in companies making the world better, primarily based around the UN sustainable development goals.

Managers also work with companies on “what they don’t do so well”. Throughout 2020, BMO GAM engaged with 58 companies within the portfolio and recorded 37 “milestones” relating to governance, climate change and environmental standards.

Rob Thorpe, head of UK intermediary sales, said: “This range responds to three growing areas of demand among advisers and their clients — active multi-asset, sustainable investments and a low charge.

“A focus on low-cost solutions has previously acted as a barrier for advisers and clients to active solutions, with passive investments becoming a default as a result.”

Mr Thorpe said these funds had “removed the price advantage of passive strategies” and enabled advisers to make a direct comparison between the approaches.

imogen.tew@ft.com

What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know