Industry Voice: The challenge of choice in ESG investing

Sustainability can mean different things to different people, which requires portfolio managers to develop a clear definition for their funds

clock • 1 min read
Industry Voice: The challenge of choice in ESG investing

One of the challenges to presenting a variety of sustainability options is being clear on the definition. Environmental, social and governance (ESG) can mean different things to different people and is an emotive topic.

Some people may have ethical views, which will mean that they don't want exposure to e.g. alcohol. Other people could be more focused on environmental issues and don't want any exposure to fossil fuels, for example.

Moreover, ESG funds can often be similarly labelled but do something completely different. For this reason, Bethan Dixon, portfolio manager, Quilter, emphasises how they focus on developing a very clear definition of what responsible and sustainable are, and what they're not.

She says: "The first step is we whittle down long lists of funds to fit the investment criteria. This is achieved through a screening process that seeks to narrow the universe of funds that potentially meet the investment criteria through applying a range of filters including a proprietary set of ESG filters that are aligned to either our Responsible or Sustainable definitions.

"The next step, and most important, is fund due diligence, where the manager's approach to ESG integration and sustainable investing is reviewed."

To read the full interview, click to access your exclusive Focus guide.

More on Multi-Asset

MPS Watchlist: Helping advisers navigate the sector

MPS Watchlist: Helping advisers navigate the sector

Professional Adviser analyses what Consumer Duty means for MPS

Professional Adviser
clock 16 February 2024 • 1 min read
Partner Insight: Combining strategic and dynamic asset allocation to deliver better outcomes for your clients

Partner Insight: Combining strategic and dynamic asset allocation to deliver better outcomes for your clients

Tara Jameson, Co-Manager of the Schroder Global Multi-Asset Portfolios
clock 08 November 2023 • 8 min read
Partner Insight: How interest rate moves drive bond returns

Partner Insight: How interest rate moves drive bond returns

Markets might have got their interest rate outlook wrong, but the case for holding global bonds as part of a multi-asset portfolio remains as strong as ever.

In-depth

February 2024: Month in review with news editor Sahar Nazir

February 2024: Month in review with news editor Sahar Nazir

Take a look at some of the news and feature highlights of the last month

Sahar Nazir
clock 29 February 2024 • 3 min read
Still fit for purpose? Why the FSCS needs to think radically

Still fit for purpose? Why the FSCS needs to think radically

How many FSCS staff does it take to change a light bulb?

Justin Cash
clock 27 February 2024 • 4 min read
Editor's View: The mystery case of the anonymous advisers

Editor's View: The mystery case of the anonymous advisers

The editor's Friday Night Takeaway from 23 February

Hope Coumbe
clock 23 February 2024 • 1 min read