Unpacking ESG funds: Will the new SDR labels really help investors?

More jargon-busting work to be done

clock • 3 min read

Laura Suter explores if the regulator's SDR labels will help investors decipher the world of ESG investing…

Some of the buzz around ESG funds has died down of late, with responsible funds having chalked up 13 straight months of outflows totaling £4.3bn, according to Investment Association figures. But there is still a big group of investors keen to make sure that they are investing in ethical companies, or that their investment portfolio is doing some good. The Financial Conduct Authority's (FCA) own estimates show it expects global assets under management in ESG funds to increase to $34trn by 2026. But as with all ethical markets, whether it's toilet paper or investment funds, there's...

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 Green

SDR changes: What next for financial advisers?

SDR changes: What next for financial advisers?

‘Improved transparency should put impact investing back on the agenda’

Isabel Baxter
clock 10 September 2024 • 7 min read
UK anti-greenwashing rule and guidance: What advisers need to know

UK anti-greenwashing rule and guidance: What advisers need to know

Sustainability characteristics must be consistent

Jessica Reed and Kya Fear
clock 30 August 2024 • 4 min read
Advisers finding ESG research confusing when selecting funds

Advisers finding ESG research confusing when selecting funds

‘We expect future reports to show an improvement in the quality and clarity of research’

Isabel Baxter
clock 12 August 2024 • 1 min read