How can advisers can move beyond the blanket ban approach?
Responsible investing has moved past just avoiding the “bad” companies. Clients now have a raft of different objectives - some want a blanket ban on certain industries, while others are open to engaging with them to try and effect change. Some want vegan-friendly investments only, while others will tolerate the “unethical” below a certain percentage.
Responsible Investment Association Australasia (RIAA) recently hosted a panel on how managers can build investment portfolios for different types of clients, and how advisers can explain the various strategies involved.
Lead through objectives
Tom King, chief investment officer at Nanuk Asset Management said that a lot of different strategies get thrown into the “responsible investment” bucket, but clients often don’t understand that there isn’t a one size fits all portfolio.
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