LISTEN: Adviser Soundbites – Part Three

10 key takeaways:

  1. ESG1 will simply become an embedded part of portfolio construction and eventually become mainstream.
  2. A key driver is engaging the children of existing clients - the inheritors of wealth.
  3. We are still ‘way off’ constructing ESG solutions that will meet the genuine feelings and drivers of that next generation.
  4. A good portfolio naturally has investments in good companies and good companies will have good ESG credentials.
  5. Client interest in ESG investing now covers a wide range from those in accumulation and decumulation to first-time investors.
  6. Some clients are starting to ask for very specific requirements e.g. gender equality in the workplace.
  7. The role of the financial adviser is to educate and make clients aware that ESG investing exists – in the same way advisers talk about investment styles e.g. active and passive. This discussion needs to be incorporated into the suitability preferences process.
  8. The greatest risk for any advice or professional services business is risk!
  9. Managing risk is all about processes, use of technology, standardisation of controls and consistency of client outcomes.
  10. Advisers must be actively engaging with their clients, ensuring that clients are completely comfortable with what they are doing.

1. Environment, Social and Governance

Find out more about Schroder Portfolios and why the range may suit your clients’ personal investment objectives, financial goals and attitude to risk here.