“As time progresses, we are seeing that millennial investors, charities and pension funds are increasingly embracing responsible investing. This has led to a rise in assets managed with a sustainable strategy rising from £7.8tn in 2011 to £16.3tn at the end of 2016. Investors want to be more ethical in their investments and ESG as an overlay to the investment decision making of asset managers has made it much easier for investors to understand the ethical benefit of running responsible investing portfolios and funds.
“Yet, many potential investors are still struggling with an ecosystem of confusing jargon. It’s important to be clear about how responsible investing strategies align investments with values, seek opportunity for generating returns and mitigate risk. For example, The Church of England’s recent impressive investment returns are based more on their asset allocation which follows the US Endowment model, rather than their application of an responsible investing approach. Investors should be sure that they are aware of the differences before they chose to invest.”
Markus Stadlmann, CIO Lloyds Private Bank