At heart, investment is pretty basic, isn’t? Growth or income or combinations thereof? Fiscal efficiency or to achieve a particular goal? Then, subject to acceptable risk, the firm or firms charged with delivering against these objectives simply do so to the best of their professional ability – managing assets as they see fit?
Yet this is no longer the whole of the story. Now, the question is being asked – which assets? Are these assets run on acceptable lines in terms of ESG – that is, environmental, social and governance – considerations? The idea of ESG … or socially responsible investing … or sustainability – admittedly ideas that are currently pretty widely defined – is becoming very powerful and advisers need to consider how they respond.