Hello advisers,I am interested in finding out what your clients care most about when investing in sustainable funds and why? How much do they want to know about the approach you take when investing their money in sustainable/ESG funds etc?Over the years have their interest in sustainable (equity) funds increased, reduced or remained the same? Why?What impact do you think the new SDR labels from the FCA will have?ThanksIma&nbsp;

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Sustainable investing and your clients

As clients became increasingly aware of and concerned about ethical issues, we observed a significant rise in demand for sustainable and ESG investment solutions. This trend was initially supported by the apparent outperformance of these types of funds. Unfortunately, more recently, some of these funds have underperformed. Consequently, we are finding that clients are now less inclined to take a proactive stance on such investments if they may hamper their returns. As a result, many are adopting a less stringent approach to their investment strategies.

Scott Gallacher

Scott Gallacher is a Chartered Financial Planner, Independent Financial Adviser and Director of Rowley Turton, a Chartered independent financial planning firm based in Leicester. He has worked in financial planning for nearly 30 years and regularly comments in the national media on retirement, pensions, inheritance, investing, tax and later-life planning. Scott is the author of 50 Today 100 Tomorrow: Planning Your Money and Life for the Next 50 Years and founder of 100 Tomorrow, where he writes about retirement, longevity, financial planning and making the most of the years ahead. He is APFS qualified and holds specialist qualifications in pensions, taxation, trusts, investments, long-term care, equity release and divorce. Scott has a particular interest in the human side of financial planning, including when people have enough, when they can afford to retire, how much they can safely spend and how they can help the next generation without compromising their own financial independence.

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More and more clients are showing a preference for ESG investing. Most commonly climate change is the top driver for ethical investing, although clients do sometimes show a preference for no animal testing or controversial weapons and arms sales. Fund managers are getting savvy to these trends and most offer a prospectus on their ESG credentials. However, for those who have zero tolerance for a specific sector, outsourincg to a specalist manager can be a great solution. We like Tatton's ethcial portfolios, thier performance has been great and has very competative charging. 

Samuel Mather-Holgate

I have been working in financial services for twenty years. My specialism is later life advice, focusing on inheritance tax planning, pension advice and equity release. 

Sustainable investing and your clients

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Scott Gallacher

Director at Rowley Turton

Samuel Mather-Holgate

Independent Financial Adviser at Mather and Murray Financial

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