Adviser market adopting clients’ ethics
Increasing numbers of financial advisers are turning to responsible investment products to satisfy their clients' desires to see their money do good, Australian Ethical believes.
Speaking at a media briefing in Sydney yesterday, Australian Ethical head of business development and client relations, Adam Kirk, revealed the fund manager had had 17 products added to dealer group approved products lists (APLs) in the recent months as advisers see the benefits of investing ethically.
"The adviser market, in the past, has predominantly been driven by a select group of advisers who have really focused their businesses on ethical investment, and that's where they've driven their business from," he said.
"What we're finding now, and certainly over the last 12 months, is that's broadening out significantly… we're really recognising the fact now that the adviser market has changed and they're getting the demand from the bottom up — from their clients.
"We're seeing advisers coming through that have looked at our products specifically for ethical clients and seen the value in it… but from there they can see that we don't correlate with the rest of the mainstream market.
"So there's therefore a diversified effect across their mainstream portfolios and they can take advantage of that and reduce their volatility… there's a real reason for them to be including some ethical investments into their mainstream portfolios."
Kirk said the proof of the growing interest in ethical investment was highlighted by the number of advisers going through the Responsible Investment Association of Australasia's (RAII's) accreditation program.
"They've double the amount of advisers that have gone through that accreditation in the last six months," he said.
AUTHOR
Nicholas O'Donoghue
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