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FE Investments’ sustainable portfolios AUM grow by 125%

29 November 2020

FE Investments’ sustainable portfolios saw assets under management increase by a record 125% this year, as the Covid-19 pandemic drove greater interest in the ESG sector.

The investment arm of global fund data firm FE fundinfo said its Responsibly Managed portfolio range, which launched three years ago, was designed to help advisers meet the requirements of a changing regulatory environment. Under MiFID II regulations set for March 2021, advisers will be obliged to consider environmental sustainability in the advice process. The FCA is set to follow suit and announce changes to CoBS to align the UK rules to Europe.

For advisers, this means they must ask clients about their sustainable investing preferences, will need to consider sustainable investing risk and offer a responsible investment portfolio option.

Rob Gleeson, chief investment officer, FE Investments, said: “There’s no doubting that ESG investing has exploded in popularity, particularly in the wake of the Covid-19 pandemic, where there has been much discussion on how the recovery and economy of the future should look. The AUM we have seen flooding into our Responsibly Managed range demonstrates the direction of travel.”

However, Gleeson warned that despite the growing popularity of ESG investing, there remains a “significant knowledge gap” about what it entails and what the forthcoming regulatory changes will mean.

He added: “While most investors are perhaps familiar with ESG investing as an overarching concept, there remains a significant knowledge gap about what ESG investing actually entails and the forthcoming changes to MiFID II and ultimately to CoBS. The Responsibly Managed range was designed to be as pragmatic and as transparent as possible so that advisers can find the solution which best meets their clients’ needs.”

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