IFA firm deVere Group is offering free advice to clients on socially responsible investing, with the aim of shifting $1bn into investment that also take into account companies’ environmental, social and governance (ESG) track record.
deVere Group advises on more than $10bn of asset making it one of the world’s largest IFA group. Group CEO Nigel Green says: “ESG is one of the megatrends of this decade. “t was heading slowly this way before, but the pandemic has acted as a catalyst.
“The health of our planet and how it affects human health which, in turn, affects the way we all live and work, has come dramatically into the fore.
“Whilst ESG highlights values, it’s also about profits, with environmentally and socially responsible funds continuing to out-perform the market and offer lower volatility.”
He says this initiative was becoming increasingly important as ESG moves ever more into the mainstream.
However, there are still investors who regard such investments as a ‘quirk’ or ‘nice to have’ rather than a legitimate portfolio diversification tool that delivers “profits with purpose”.
Research conducted last year by deVere showed one in four client around the world have either invested, or are looking to invest in this ESG megatrend.
The research found millennials are more likely to seek responsible investment options that other age group, and this should accelerate this trend as they start to inherit wealth from older age groups.
Green adds: “By offering free advice we will be removing any potential barrier in considering ESG by potential investors and we aim to position $1bn in environmental, social and governance investments within five years.
“We hope we’ll be able to assist our clients in fulfilling their environmental goals by investing in companies that will reduce carbon, and investing in those that prioritise employees’ rights, consumer protections, board diversity and corporate transparency and stakeholder accountability, whilst simultaneously receiving good returns.”