12 Jan 2021
One of the world’s largest independent financial advisory and fintech organisations is to offer free, independent advice to clients on socially responsible investing, with the aim of "positioning $1bn in environmental, social and governance (ESG) investments within five years."
The move from the deVere Group, which has more than $1obn under advisement, is “the first ESG campaign of many to come throughout 2021.”
deVere Group CEO and long-time ESG advocate Nigel Green says: “ESG is one of the megatrends of this decade.
“It was heading slowly this way before, but the pandemic has acted as a catalyst. The health of our planet and how it affects human health which, in turn, affects the way we all live and work, has come dramatically into the fore.”
He continues: “Whilst ESG highlights values, it’s also about profits, with environmentally and socially responsible funds continuing to out-perform the market and offer lower volatility.
“We believe this is an especially important initiative right now as ESG moves ever more into the mainstream. However, there are still investors who regard such investments as a ‘quirk’ or ‘nice to have’ rather than a legitimate portfolio diversification tool that delivers profits with purpose.”
In June last year, deVere revealed that 26% of clients around the world are eyeing exposure to or are now part of the ESG megatrend.
Of the finding, he notes: “As millennials, who are statistically more likely to seek responsible investment options, become the major beneficiaries of the largest intergenerational transfer of wealth – an estimated $30tn in the next few years - we can expect both retail and institutional investors to continue to pile into ESG.”
The organisation also discovered that 56% of investors already engaged in ESG do so citing they believe they are a safe-haven in times of volatility in traditional markets.
The deVere CEO concludes: “Data underscores the financial reward-making abilities of ESG investments and their core values are ones to which we should all be showing commitment.
“By offering free advice we will be removing any potential barrier in considering ESG by potential investors and we aim to position $1bn in environmental, social and governance investments within five years.
“We hope we’ll be able to assist our clients in fulfilling their environmental goals by investing in companies that will reduce carbon, and investing in those that prioritise employees' rights, consumer protections, board diversity and corporate transparency and stakeholder accountability, whilst simultaneously receiving good returns.”