1 in 10 clients dedicated to ESG investing

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Only 12% of advised clients want ESG factors to be a major influence on how their portfolio is managed, according to a new report.

However, 56% of advised clients want ESG factors to play some role in how their portfolio is selected or managed, according to data from Quilter’s new client profiler tool.

Four in ten (44%) of advised clients were ESG focused, meaning they know what responsible investment means and will take ESG factors into account.

A separate survey by the Financial Planning and wealth management firm in March showed that 44% of investors identified greenwashing as their biggest worry when investing.

David Tiller, commercial and propositions director at Quilter, said: “Suitability is an area that already attracts significant regulatory scrutiny, and it is absolutely crucial that advisers are able to articulate and invest client assets according to their preferences for integrating ESG factors. That’s why our client profiler has proven highly popular with advisers who are now raising responsible investing as part of the standard onboarding and ongoing client review process. 

“The data from the tool shows that responsible investing is not a one size fits all. While the demand for and awareness of investments that actively consider ESG factors has grown over recent years, there are varying degrees of preferences when assessing clients psychometrically. It’s especially important to acknowledge the middle ground of clients who may not be ready for an ESG Dedicated portfolio but who would still like to select their portfolio partly on the basis of its ESG rating.”

Quilter launched its new client profiler tool as part of its expanded WealthSelect Managed Portfolio Service which added Responsible and Sustainable portfolios in March.

The tool was developed in collaboration with Dynamic Planner and is available to all advisers who use the Quilter platform.




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