Peter Michaelis: Integrating ESG into portfolios through multi-asset funds

Guard against risk posed by poor environmental, social and governance practices

clock • 5 min read

Without properly considering the risks posed by companies not playing by the rules, both advisers and their clients could face substantial losses, warns Peter Michaelis

A multi-asset fund is often a simple way to ensure a client's portfolio is well diversified - and, as the regulator is often at pains to point out, good diversification can help an adviser to manage investment risk and reduce portfolio volatility. This is one of the reasons multi-asset funds have grown in popularity among advisers in recent years. According to a Barings survey conducted in July 2015, nearly half (47%) of advisers are recommending their clients invest in multi-asset funds - up from 36% 12 months previously. General favourability towards multi-asset funds is also high, wit...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

'New normal': Lessons for investors against a backdrop of uncertainty

'New normal': Lessons for investors against a backdrop of uncertainty

'There is a sense that the markets may have entered a new phase'

Kate Rainbow
clock 10 April 2025 • 3 min read
Global small-caps and the case for direct engagement

Global small-caps and the case for direct engagement

'We firmly believe these interactions have significant merit'

Tobias Bucks and Simon Wood
clock 07 April 2025 • 4 min read
Into the Spider-Verse we go: Chris Justham assesses Trump Mk II

Into the Spider-Verse we go: Chris Justham assesses Trump Mk II

'The cognitive dissonance when your beliefs don't add up cause very real pain'

Chris Justham
clock 04 April 2025 • 3 min read