Advisers’ commitment to sustainable and impact investment crucial for sector growth
Expert knowledge and commitment to sustainable and impact investment can give investment advisers the competitive edge they need to stand out in a crowded marketplace, according to a new report analysing the current state of the UK advice-giving market, launched last week.
The research, titled The Power of Advice in the UK Sustainable and Impact Investment Market, was conducted by Susannah Nicklin under the auspices of the first Bridges Fellowship Programme, an initiative by sustainable growth investor Bridges Ventures. It reflects the findings from over 90 interviews with representatives from across the chain of advice including asset owners, consultants, social entrepreneurs, trade bodies and industry associations among others. It includes 15 case studies of advisers ranging from private banks to large institutional sector consultants to sustainability specialists and IFAs.
It found that, while there are already some outstanding specialist advisers in the sustainable investment arena, the vast mainstream investment advisory community itself needs advice and convincing to play a more active role in the market.
The report cites lack of human resources, limited investable universe and policy and legal constraints as some of the reasons many advisers are staying away from this sector. However, it also points out that those who decide to develop the required in-house expertise or build linkages with specialists will not only act as responsible corporate citizens, but will also bolster the resilience of their own business models, attracting more investors and deepening their relationships with existing clients.