Talking Point  

Majority of advisers intend to increase ESG exposure this year

Majority of advisers intend to increase ESG exposure this year

Around 60 per cent of advisers anticipate increasing their exposure to sustainable investment funds this year, according to the latest FTAdviser poll. 

The poll, which was conducted via the FTAdviser Twitter account, found that 60 per cent of respondents intend to increase their investments in funds which have a clear focus on issues around clients' interest in companies with a focus on sustainable investments. 



FTAdviser previously reported that inflows into such funds quadrupled in 2020, even after having reached the level of £124m a week in 2019. 

Despite those inflows, responsible investment funds still make up only about 3 per cent of the total market in the UK. 

Providers continue to launch new products with the aim of capturing some of the flows going to this trend, with Liontrust the latest to announce its intention to bring a sustainable investment focused investment trust to market. 

Such funds have gained considerable prominence over the past year as a result of a strong period of performance in the pandemic, while new regulations require advisers to ask ESG questions as part of the suitability questionnaire, and are helping to drive demand, while greater clarity has also been provided at the European level as to what constitutes an ESG fund.