Many of our clients have strong views about how their funds are invested. This can be for a variety of reasons, from strong ethical beliefs at an institutional level to concern about reputational risk and bad publicity. Charities, in particular, have been subjected to media scrutiny about their investments.
In the past, this seemed rather unfair, given the investments were often managed by institutions on an arms-length basis. However, with greatly increased awareness about environmental, social and governance (ESG) factors, it is perhaps incumbent on trustees and treasurers to be more aware of how their funds are invested.
At Royal London Asset Management (RLAM), we have a dedicated responsible investment team that gives environmental, social and governance (ESG) oversight across our funds, including our cash funds. This is an important differentiator between us and some of our competitors.