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The importance of due diligence within ESG portfolios

While ESG is not a new way of investing, there are still many new funds available, making it increasingly important for advisers to ensure they pick the right one and with a new ESG fund being launched seemingly every month, proper due diligence is more important than ever. 

ESG funds can typically have better returns than non-screened funds, but it can also mean that with a smaller number of investments within a fund, it could end up being more volatile. As such, due diligence is of increasing importance to advisers looking to recommend these types of funds to their clients.

Due diligence is undertaken in every step of advice, but having a relatively new (to some) area of investment, advisers need to be making sure they are doing the right things for their clients.

Head of Investment Research Declan McAndrew agrees, saying: “By taking the time to listen to clients and understand what their ESG investment goals, beliefs and ethos are, we can advise them appropriately in a way that both considers their sustainable criteria, while also delivering returns and helping them meet their long-term financial goals.”

Read the article in full from Money Marketing here.

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