InvestmentAAM responsible investing

Responsible investment made easier

It’s time to change the way we invest. Investors are increasingly aware of the impact that their decisions can have on our society and environment, and are looking for more than just a financial return on their investments. As a result, they now want more control over how their beliefs are represented through their investments.

In a recent survey*, 74% of people said they would value a conversation with their financial adviser about responsible investment.

* Boring Money (2019) ESG investing – the retail appetite

What is responsible investment?

Broadly speaking, responsible investment is a strategy or practice to incorporate environmental, social and governance (ESG) factors into investment decisions. Responsible investment covers a range of different approaches and aims.

What are ‘ESG’ factors?

ESG is the term used by the investment industry to describe and categorise the big world issues, such as climate change. When contemplating responsible investment, many of us initially think of environmental factors, but these only constitute the `E’ of ESG. In fact, there are lots of other factors to consider which provide both risks and opportunities for investors:

ESG factors

Different approaches to responsible investment

There are several different approaches fund managers and financial advisers can take to incorporate ESG issues into their investment decision making process when managing or giving advice in respect of responsible investments.

Here are some examples of different elements that could be used on their own or in combination.

responsibe invest 2021-01

What next?

Speak to an AAM Advisory wealth manager about your attitude to responsible investing. Together you’ll be able to formulate a personalised plan so your preferences can be taken into account, alongside your risk appetite and financial goals.

 

Important information

This article is intended for general circulation and for information purposes only. It may not be published, circulated, reproduced or distributed in whole or part to any other person without prior consent of AAM. This article should not be construed as an offer, solicitation of an offer, or a recommendation to transact in any products mentioned herein. The information does not take into account the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a licensed wealth manager regarding the suitability of the investment product before making a commitment to purchase the investment product. Whilst we have taken all reasonable care to ensure that the information contained in this article is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness. Any opinion or estimate contained in this article is subject to change without notice. The above article may contain data obtained from third parties and as such we cannot guarantee the accuracy of this data. AAM Advisory Pte Ltd is licensed by the Monetary Authority of Singapore, FA Licence no 100032.

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