Quilter Financial Planning launches ESG integration assessments for investment proposition

Quilter Financial Planning has introduced independent ESG Integration assessments for all funds in its restricted investment proposition. 

Each of the 65 multi-asset portfolios chosen from 18 investment houses receive two ESG Integration assessments from independent research and consultancy firm, Square Mile. The first measures ESG integration at a firm level and indicates how far along the journey of ESG integration the company is, and how committed it is to future improvement. The second measures ESG at a portfolio level and highlights how much the manager uses ESG as an integrated part of their investment process.

The assessments range from 0 for no ESG integration to 0+, 1, 1+, 2, 2+ and 3, the top ranking for ESG integration. 

In April last year, Quilter commissioned Boring Money to research advised customers aged 40-65 with GBP50k - GBP750k investable assets to understand a bit more about their interest in ESG investing. 

The research found that 43 per cent of investors thought discussing responsible investing was very important. This is significantly higher than discussing the geographical make up of their investment which just 29 per cent felt was very important. 

Additionally, 25 per cent of investors that say that ESG factors are ‘very important’, would go so far as to say that they would ‘definitely’ accept lower investment returns or higher risks if those were necessary trade-offs.

Rick Eling, investment director at Quilter Financial Planning, says: “The days of a dichotomy between general investors and ‘green’ investors are long gone. Our research shows that clients and advisers both care about ESG issues and it’s time that our proposition reflected those themes.  This is only our first step on the way to becoming the UK’s responsible wealth manager of choice.

“These assessments offer advisers using our restricted investment proposition a starting point for having meaningful ESG conversations with their clients. We are pleased to present people with the tools to make informed decisions.” 

Diane Earnshaw, head of consulting at Square Mile Investment Consulting & Research, says: “We wholeheartedly share Quilter Financial Planning’s conviction that ESG issues are of fundamental and increasing importance to both investors and advisers. We were delighted to work with them to deliver our ESG assessments to help support their advisers.”

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