Advisers need to step up RI offerings
There is a desire among investors to fight climate change, especially in the face of government inaction, and advisers need to step up their offerings of responsible investment (RI) and ethical products, Australian Ethical believes.
Responding to the Responsible Investment Association of Australia's (RIAA) latest report, Australian Ethical said as the core RI segment grew by 65 per cent in one year and was now worth $51.5 billion, the finance sector needed to get serious about how it responded to climate change.
Australian Ethical managing director, Phil Vernon, said investors were moving their money to asset managers who paid attention to the environment and social impact of their investments.
"Investors want to ensure that asset managers are mindful of minimising the risks that climate change poses to their investments," he said.
Australian Ethical also said issues such as human rights and gambling were also attracting investors.
"We use a negative screen to rule out investments that harm the environment, people or animals, as well as a positive screen to invest in companies that improve them," Vernon said.
"This holistic approach resonates with a growing number of conscious consumers who want to know that their money is being put to good use, in a way that aligns with their values."
Recommended for you
Greater consistency across the ASIC adviser exam has helped boost the number of first-time candidates this year with many opting to sit before undertaking a Professional Year.
Financial advice practice Eureka Whittaker Macnaught is in the process of acquiring three firms to boost its annual revenue to $25 million.
AMP has partnered with Dimensional Fund Advisors and SouthPeak IM to launch a suite of investment solutions aimed at expanding retail access to traditionally institutional funds.
The Financial Advice Association Australia has appealed to licensees to urgently update their FAR records as hundreds of advisers are set to depart by the end of the year.
