Wealth Adviser Newsletter

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NEWSLETTER | 8 May 2020

Investors show increased appetite for ESG investments

There’a decidedly green tint to this week’s newsletter, which makes a change from the coronavirus content of recent issues, with news from Federated Hermes of a sharp uptick in allocations to ESG investments since the beginning of the Covid-19 outbreak. The poll of 200 UK IFAs reveals that almost 80 per cent believe that their clients would choose to divest from companies they deem to have failed to support their employees and wider society through the crisis.

This increased appetite for ESG investments is backed up by a second survey this week, this time from FE Fundinfo, which reveals that while over half of advisers have reported an increase in client allocations to ESG funds, 62 per cent believe that many clients don’t fully understand what is involved in socially responsible or sustainable investing.

ESG aside, precious metals or gold portfolios have also proved popular with investors in recent weeks, as Adrian Lowcock, Head of Personal Investing at Willis Owen points out, with eight out of the top 10 funds in April falling into those categories. Stock markets in general bounced back strongly during the month following the coronavirus crash in March, with smaller companies, and tech firms in particular, helping some markets to their biggest monthly gains in 30 years.

New wealth management technology platform Addepar meanwhile, is looking to make alternative investments part of the new normal for some investors by providing access to private equity and hedge fund opportunities, secondary market liquidity solutions, shares in private companies, and cash programmes, via its new Marketplace offering.

And finally, a reminder, that etfLIVE Euope, an online digital summit from our sister site ETF Express, is looming large. Click here for more information and to register…

Wealth Adviser

Companies in this issue
Addepar
Brompton
Federated Hermes
FE Fundinfo
Fintuity
First Trust
Quilter Investors
UBS
Willis Owen

UK IFAs report major rise in ESG allocations since start of Covid-19 outbreak

Thu | 7 May 2020, 14:47

Since the beginning of the Covid-19 outbreak, UK independent financial advisers (IFAs) have seen a sharp rise in the number of investors seeking to tackle environmental concerns and improve society through their investments.

Thu | 7 May 2020, 14:47

Investment decisions based on environmental, social and governance (ESG) factors are growing in popularity among investors, despite a limited understanding of what they entail, research has found.

Thu | 7 May 2020, 14:47

The global lockdown was not enough to deter stockmarkets in April which bounced back strongly as investors focused on the huge support packages being unveiled by central banks, with some markets seeing their biggest monthly gains for more than 30 years, says Adrian Lowcock, Head of Personal Investing at Willis Owen…

Thu | 7 May 2020, 14:47

Investors should be looking at the new breed of ‘dividend heroes’ as traditional UK income paying businesses suspend or scrap their dividends in the wake of the Covid-19 lockdown, according to Helen Bradshaw, portfolio manager at Quilter Investors.

Thu | 7 May 2020, 14:47

Addepar, a technology platform for wealth management, has launched Marketplace, a new application on the Addepar platform allowing clients to view and assess a range of offerings and digitally initiate transactions through trusted partners.

Thu | 7 May 2020, 14:47

National Health Service (NHS) workers are being offered free initial financial advice from Fintuity, the UK's only FCA regulated-online Independent Financial Adviser (IFA), via its online platform.

Global ETF launches 30.04-07.05.20

Thu | 7 May 2020, 14:47

In a fairly quiet week for new ETF launches, UBS responded to the seemingly ever-increasing demand for ESG investment products with the launch of two sustainable investing funds on Xetra and Börse Frankfurt. Elsewhere, Brompton launched two new actively managed dividend ETFs focused on real asset and low volatility securities, while First Trust also launched a new actively managed fund sub-advised and managed by TCW Investment Management Company.