Ethical investing interest increases, but solutions lacking

One in four UK independent financial advisers (IFAs) said the ethical investment product range was not satisfying the greater client demand in this area.

About 60% of the IFAs surveyed said they were dissatisfied with the current range of ethical investments they can offer clients.

Heartwood Investment Management, which carried out the survey, found the main area of disappointment was global diversification. Just over 80% of the IFAs said they wanted ethical multi-asset portfolios rather than single strategies.

Moreover, a third said they have struggled to manage client risk when buying single-strategy ethical funds in the last six months.

The findings also suggested 62% of IFAs preferred an integrated screening process when building ethical portfolios, which applies both positive and negative screening criteria, meaning ethically questionable stocks (such as tobacco, arms manufacturers and alcohol) were excluded, and actively ethical investment opportunities were targeted.

Heartwood, which offers ethical funds, surveyed 80 IFAs.

©2016 funds europe

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