Responsible Investment Advice Integration

Advice on suitability and sustainability

The integration of sustainability preferences into the advice suitability process and product governance will have a significant impact on fund flows into responsible investment solutions going forward. UK intermediary businesses are needing to implement these changes into their advice models and become ‘business ready’ to meet the regulators expectations, and client demand. This is where we can help you address the following areas:

Responsible investing – market backdrop of regulatory change, client demand and responsible investment choices

With the likes of David Attenborough and Greta Thunberg – responsible investing is moving to the mainstream. Not just through airtime and activism, but it is slowly graduating into the corporate world.

This in hand, develops the necessity and demand from clients for responsible investment fund ranges and solutions. With top down drivers pushing for sustainable financial growth, it brings with it a plethora of new rules and regulations.

Our detailed Responsible Investment Advice Integration guide is here to provide you with further support and guidance on these regulatory changes such as MiFID II and PROD, as well as map out the spectrum of responsible investment approaches and choices available.

Philanthropy

Donation/ support of good causes.

Traditional Investing

Limited or no regard for ESG practices.

Thematic

An investment style that can be found within a variety of investment approaches, focused around different theme(s) such as climate change, clean water, renewable technologies etc.

ESG Integration

The systematic and explicit inclusion of material environmental, social and governance (ESG) factors into investment analysis and investment decisions.

Sustainability Focus

Approaches that select investments on the basis of leadership in environmental, social and governance aspects.

Spectrum of responsible
investment approaches

Impact Investing

Investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.

Exclusionary screening

Prohibitions of investments along certain themes, activities, or industries.

Choices summary

Markets have shifted with sustainable product options now outnumbering other styles. There’s been a shift from negative screening (exclusions) on ethical grounds to a focus on positive screening – ‘doing good/making a positive impact’.

The majority of options are still single sector funds or DFM models rather than risk managed multi-asset solutions with a relatively low-level of options currently available.

Funds and portfolios are increasingly launching ESG screened products, many of which are passive, that don’t contain the stewardship and engagement element that helps evidence impact and influence.

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CT proposition – credentials, solutions and support

At Columbia Threadneedle, we have always believed that responsible investing is just good investing. Over 35 years ago, we launched Europe’s first ethically screened fund, and ever since, we have been building our capability and launching innovative funds and solutions for clients.

As investors, our responsibility does not end when an investment is made. We are active owners, using considered engagement and thoughtful voting to drive positive change, reduce risk and enhance long term performance. Click the cards below to find out more.

Risk-targeted fund range

CT Sustainable Universal MAP
Sustainability-orientated active multi-asset funds – ideal for the growing number of individuals that, alongside meeting their financial goals, want to make a positive impact on the world through their investment decisions.

Our Responsible funds

10 global and regional funds
Our range consists of global and regional funds across asset classes – each based around our clear Avoid, Invest, Improve philosophy. This philosophy is a framework we developed to demonstrate the ESG credentials of each of our funds.

Engagement service

Responsible Engagement Overlay (reo®) Service
Access our full suite of stewardship expertise and gain greater influence to effect positive change by joining one single, powerful voice.

Implementation considerations

To support you, we outline a potential roadmap with milestones to fully integrate responsible investing into an advice process model. It highlights support Columbia Threadneedle can provide in areas such as adviser education, marketing toolkit and client communications.

Marketing toolkit

This decade is vital for achieving the ambition of the UN Sustainable Development Goals (SDGs), and ultimately creating a better future for us all. Investors have a key role to play – it’s not enough to say we intend to support sustainable development, we need to monitor and measure the impact our investments have. That means working with our investee companies to encourage better disclosure of impact metrics.

We publish impact reports annually for our growing range of sustainability strategies, using the SDGs as a key reference point to measure the impact of our investment decisions.

For more information on our key marketing materials, click here.

Projections

Market trends, indicate a rapid change in investor and adviser sentiment towards sustainable investing. With regulatory changes planned and the environmentally focused backdrop – the growth in RI asset flows is set to significantly rise.

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Adviser Edge

Access professional support from Columbia Threadneedle focusing on financial planning, investment and practice management. Earn structured CPD to enhance your client outcomes.

Conclusions

The Responsible Investment Advice Integration guide outlines the potential responsible investment advice integration milestones and support Columbia Threadneedle can provide.

Responsible Investment
Advice Integration

Advise your clients on the suitability process across sustainability preferences

Useful Documents

Our Thinking

14 March 2022

Do we need a recession to control inflation?

One of the aftereffects of Covid is high inflation almost everywhere in developed markets. Some of this inflation is temporary bottle necks, but more sustained price pressures have emerged in the job market.
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3 March 2022

Our thoughts on the ongoing developments in Ukraine

Whilst the situation remains fast-moving and fluid, Simon Holmes gives his thoughts on the short and long term consequences.
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1 March 2022

5 factors for Multi-Asset investors to revisit in 2022

While it has clearly been a disappointing start to the year, we believe that there are still grounds for optimism.
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Adviser Edge

Insight to enhance you client outcomes

Technical education and business development insights on financial planning, investment and practice management.

Register to log your structured CPD on a personalised dashboard, plus receive notifications of new content, upcoming events and webinars.

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19 February 2021

Acquiring or selling a business

There are some questions that keep popping up around buying or selling an adviser business
Part of 50 mins structured CPD

Why Columbia Threadneedle for low-cost multi-asset

CT Universal MAP redefines value through active multi-asset solutions and business support at a passive price point. Fund OCFs at 0.29%-0.39%.

Our Portfolio

The CT Universal MAP and Sustainable MAP ranges offer risk-controlled portfolio options designed to cover a host of client growth, income and sustainability needs.