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October 17, 2018

Brooks Macdonald introduces responsible investment service

UK-based investment management firm Brooks Macdonald has introduced a responsible investment service as part of its centralised investment proposition.

The new service will be led by head of the responsible investment research team Ben Palmer and investment director Edward Park.

The responsible investment service features Avoid and Advance strategies with an avoidance-based approach as well as an investment strategy.

The strategy will explore funds offering solutions to sustainability issues or those with strong corporate policies and outputs associated with environmental, social and governance (ESG) criteria.

Brooks Macdonald said that the rising demand for responsible investment is driven by social awareness, client needs and regulatory support for sustainable business practices.

A research by Greenwich Associates showed that 96% investors view ESG investing as a long-term trend, while 67% expect the related demand to grow over the coming three years.

Brooks Macdonald also noted other research published by Deutsche Bank earlier this month, revealing that an ESG mandate governs nearly 75% of global assets under management.

The research also showed ESG-focussed assets under management are increasing by around 20% each year.

Brooks Macdonald chief executive Caroline Connellan said: “We see strong demand in the market for this type of product from both existing and new clients, and look forward to delivering a solution that meets their needs.”

However, other research shows a less enthusiastic uptake of of ESG investments by UK investors. A study of 900 UK HNWIs by OppenheimerFunds found just 14% of UK millennial investors who cite an interest in sustainable investing and actually invest in the class.

In another poll, British fund manager Schroders found that Sustainable investment had little to no influence on the decision-making process of 32% of institutional investors.

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