Independent investment management company, Invesco, has recently released its Research in Finance study.
The study analyses the attitudes of UK IFAs with regard to Sustainable Investing and identifies the various barriers they face.
Invesco, one of the world’s largest and leading independent investment managers revealed findings of its new comprehensive Research in Finance study at its annual global ESG conference, analysing the attitudes of UK IFAs and end investors with regard to Sustainable Investing (SI).
Invesco surveyed 201 advised investors, and 161 financial advisers, financial planners and wealth managers, all in client-facing roles and found responsible investments still only account for 10% of investment portfolios.
The findings highlighted that interest in sustainable investing is strong among all generations of investors; with 90% of respondents aged under 45 stating it matters that their money is invested responsibly, in addition to three-quarters of over 60s. Only 15% of total investors surveyed stated they had no interest at all.
Interestingly, the findings showed 52% of respondents who currently do not invest sustainably expect to over the next 12 months.
This increased interest was supported by 85% of advisers stating that they are already discussing ESG with their clients.
However, in spite of more than three-quarters (77%) recommending sustainable portfolios – when asked what challenges they face when thinking about sustainable investing with clients, nearly two-thirds (62%) of advisers point to an inability to distinguish between the different types of fund or strategy.
So, whilst the research showed that interest and knowledge levels are growing, inconsistent information is making it hard for investors to make informed decisions. Suggesting why investors in all age groups said there had been some reluctance on the part of advisers to discuss sustainable investments with authority.
The response to this was that more than two-fifths (42%) of advisers pointed to a lack of knowledge being the biggest barrier when allocating to sustainable strategies.
More than two-fifths (43%) said there is too much jargon, where the terminology is confusing, and one in four (38%) stated there is not enough accessible literature available. Nearly a third (32%) of advisers say they would like more guidance in using the right language and terminology with clients.