Premier Wealth Planning is delighted to announce the launch of our Responsible Future investment portfolio service.
Investing responsibly is integral to the values and culture within Premier. To reflect the increasing awareness and demand for responsible investments, we are now including as part of our proposition a bespoke discretionary investment proposition which considers a broad range of influencing factors including Environmental, Social and Governance (ESG).
Working closely with our research partners, our Head of Investment Strategy, Robert Hird, has constructed an actively managed bespoke portfolio exclusive to Premier. The aim of this is to take advantage of the growing momentum in the ESG space, whilst trying to do good, avoid harm and deliver the desired outcome.
Research has shown that companies which embrace ESG philosophies, which may include reducing climate change risks associated with their business, employing a broad and diverse executive board structure and demonstrating a positive strategy on human rights and labour conditions, can report increased profitability and generate enhanced value for shareholders.
Over the longer term, ignoring ESG and the investment opportunities available will impact on positive outcomes and total returns for investors, as the momentum of the investment market moves more and more towards these influencing factors.
The responsibility for influencing company behaviours now rests with the investment community, to insist on change in corporate culture. For those companies that are not willing to adapt and evolve, genuine risks and barriers are likely to be encountered over the long term, materially impacting on a company’s ability to deliver sustained shareholder value.
Of course, it is not just individual companies that need to demonstrate sound practise in this area. We do also look for the investment houses to integrate responsible processes into the corporate culture and investment philosophy. With our investment proposition utilising a range of collective investment funds, we conduct extensive due diligence on each fund manager and the specific fund proposition and objectives. We would expect to see the fund manager undertaking thorough due diligence and active dialogue with any company they are considering investing in, whilst also maintaining regular reviews with the company to ensure ongoing adherence to the ESG philosophies.
Historically, fund managers have often been accused of “green washing” their legacy ethical type investment propositions, with limited research being undertaken on the underlying holdings. In today’s climate, the overall due diligence process is far reaching and ensures a genuine ESG approach is employed within our own strategy.
Going forwards we expect Responsible Investing to no longer be a specific category of investment, with the philosophy simply accepted as the standard benchmark for all investing. We envisage investors are now not just looking to maximise return for their investment, but are also looking to have a positive impact on the environmental and social issues now widely evidenced globally.
As highlighted earlier, we do feel that overlooking the factors influencing the Environment, Social and Governance considerations will have a potential negative impact on future investment returns. It is important action is now taken to start addressing these issues and we are excited about the qualities the Premier Responsible Future portfolio brings to the investment arena and the outlook for the future.