Environmental, Social and Governance (known as ESG) factors are increasingly important to our clients when they are considering how and where they want to invest their money.
More and more investors, especially younger investors, want to ensure they are only investing in funds which have a high ESG rating. With more and more ESG investment opportunities now available, socially responsible investors have greater choice than ever when selecting investments that reflect their own view of the world, says Chris Corkish, pictured below left, Investment Marketing Manager, RL360.
RL360 is introducing a series of measures designed to provide greater choice for those looking to invest responsibly, and also make it easier it for investors to assess how ESG friendly the funds we make available through our guided architecture fund ranges really are.
We sought independent evidence of the ESG credentials of both the asset managers and their offerings as part of our review process, ensuring that the thematic funds we feature provide credibility and real positive impact," Chris Corkish, RL360
This puts the power into the hands of advisers and plan owners to determine how they shape their portfolio to match their conscience.
The new Responsible Investing sector in our defined fund ranges has been constructed following exhaustive research into the market, trends
and key initiatives driving the growth of this area.
Importantly, we sought independent evidence of the ESG credentials of both the asset managers and their offerings as part of our review process, ensuring that the thematic funds we feature provide credibility and real positive impact.
We have built the sector across six broad themes; climate change, resources and energy, sustainability, human development, water and waste and funds that are multi-thematic.
There are 15 funds in the new sector in total; this represents our strong conviction that investors will seek in future to ensure that all, or part, of their investment portfolio is working towards positive societal change in an area that is close to their heart.
Each of the funds has also been analysed and reviewed in depth, using our quantitative and qualitative review process, to ensure that they are appropriate and of the necessary quality.
Finally, the new sector will be regularly reviewed so that it best reflects the principles of responsible investing and offers credible choice. We will continue to work with asset managers to identify and review new offerings as the responsible investing space grows.
The integration of the Morningstar Sustainability Rating into the product specific fund centres on our websites complements the new sector by enabling advisers and plan owners to understand how the other funds in our range are rated by reference to the companies they invest in.
We have just experienced a disruptive period of large scale changes in the way that we work and live, which have cast stark relief on ESG issues, particularly social factors and the effect of humanity on the planet. It is not difficult to imagine how an understanding of ESG factors adds to minimising risks in this context, and in the potentially violent upheavals the world could experience as we seek to combat climate change and develop in a sustainable manner.
We believe that investing responsibly does not mean sacrificing strong investment returns, increasingly the opposite is true. Companies that ignore ESG face higher risk and a more uncertain future. Investing responsibly can now be done with the heart and the head and here at RL360 we are doing our part to enable you to do yours.
The International Investment and RL360 Guide to ESG Investing is out now.
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