Can machine learning give IFA clients an ESG investment selection edge?

Big data

clock • 8 min read

ESG investing is becoming a top priority for investors. Increasingly sophisticated machine learning algorithms and big data could be the solution that gives financial advisers and DFMs the edge as they advance the interests of their clients. Adrian Boulding investigates this in discussion with Dr Daniel Philps, head of investment strategy and partner at Rothko Investment Strategies

Our government is a firm believer in the power of investors to push the companies they invest in towards behaviours that will be kind to the planet. And of course, the investors with the most muscle are those with the most cash to invest. So, it was entirely logical for the government to take powers in Pensions Act 2021 to mandate a new climate-friendly approach by the big pension schemes - those with more than £5bn of assets and the 38 authorised master trusts. From October 2021, they must have an effective governance process for dealing with the climate-related risks to their portfo...

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