Peter Michaelis: Integrating ESG into portfolios through multi-asset funds

Guard against risk posed by poor environmental, social and governance practices

clock • 5 min read

Without properly considering the risks posed by companies not playing by the rules, both advisers and their clients could face substantial losses, warns Peter Michaelis

A multi-asset fund is often a simple way to ensure a client's portfolio is well diversified - and, as the regulator is often at pains to point out, good diversification can help an adviser to manage investment risk and reduce portfolio volatility. This is one of the reasons multi-asset funds have grown in popularity among advisers in recent years. According to a Barings survey conducted in July 2015, nearly half (47%) of advisers are recommending their clients invest in multi-asset funds - up from 36% 12 months previously. General favourability towards multi-asset funds is also high, wit...

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