Investment decisions based on environmental, social and governance (ESG) factors are growing in popularity among U.K. investors, despite a limited understanding of what they entail, according to the 2020 Financial Adviser survey, conducted by fund data and technology company FE fundinfo.
While 56 percent of advisers have increased the amount of client money they have invested in ESG funds over the past year, 62 percent believe their clients do not understand what ESG investing involves.
Over a third of advisers (36 percent) thought the growth in ESG was primarily investor-led. And 7 percent stated it is being driven by institutional pressure alone, and a further 38 percent attributed the growth to a mix of these factors.
Furthermore, the “vast majority” (82 percent) of advisers thought the number of ESG propositions would increase further over the next year, with many already taking steps to meet growing client demand. More than half say they already offer E
