NextWealth: ESG badged funds lead over full ESG integration

Only a fifth of advisers plan full ESG integration

Only a fifth of financial advisers plan to fully integrate ESG investing into clients’ portfolios, with most preferring a core and satellite approach that uses badged ESG solutions, according to NextWealth.

Following from their first report that was published in April, NextWealth's latest update of their ESG Tracker Study focused on ESG badged funds, finding that they continue to lead financial adviser preference. According to the report, financial advice professionals say that they expect two thirds of their clients' investments to be in non-ESG funds. One fifth will be in funds which have full ESG integration, while 13% will be in badged funds or solutions with specific sustainable investment or carbon reduction objectives. It notes that among advisers that are using badged funds, ‘ESG...