| The rise and rise of responsible investing
The inexorable rise of ESG continues with news this week from the Investment Association that UK responsible investment funds have attracted GBP7.1 billion inflows for the year to date, a huge increase on the GBP1.9 billion seen in the same period in 2019.
"In a year clouded by uncertainty, responsible investment funds are a beacon for how savers can put their money to work to support positive change globally, and our industry can be proud that these funds are reaching new heights of popularity," says Chris Cummings, Chief Executive of the Investment Association.
On the back of this increased demand from investors and intermediaries, we have news of the launch of two new sustainable funds by Close Brothers Asset Management, which aim to generate consistent long-term returns by screening out unethical practices while focusing on investment opportunities with positive ESG and sustainability records.
“Investors and clients are becoming more aware of how their money can affect the world around them and increasingly want to invest in ways that reflect their concern and respect for the natural environment, for human dignity and for responsible corporate behaviour," says the firm's Chief Executive Martin Andrew.
Staying with the responsible investing theme, we also report on a new ESG investment solution from fintech Avaloq which allows banks and wealth managers to build tailored, personalised ESG-compliant portfolios for clients. Advisers can match client needs through a range of filters and tools such as standardised scorecards, “green” benchmarks, exclusions, norms-based screening such as the UN Global Compact or the OECD Guidelines, and thematic investments.
Cheshire-based wealth management firm Equilibrium meanwhile, has strengthened its ESG credentials by signing up to the United Nation's Principles from Responsible Investing (PRI). The moves sees sister company Equilibrium Investment Management commit to only invest with fund management groups who are themselves PRI signatories by the end 2021.
Switching to another hot topic – technology – we have news of a new study by Intelliflo which reveals that financial advice firms have made significant strides in improving their use of technology over the last year. And this digitalisation has led to increased revenue and more clients.
"Embracing technology can have a fundamental impact on any business," says Nick Eatock, CEO of Intelliflo. "Firms that score highly are clearly outranking their peers in terms of clients advised, revenue generated, recurring revenue and assets under management."
And finally, we look at new research from Barclays Wealth which suggests that building trust and understanding between generations will shape the success of wealth transfer among high net worth (HNW) families in the coming years.
“The transfer of wealth between generations is an emotive subject for families and one that has risen to the top of the agenda recently, accelerated by the pressures of Covid-19," says Effie Datson, global head of Family Offices, Barclays Private Bank.
Wealth Adviser
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