Investment management firm BNY Mellon has unveiled its own environmental, social and governance (ESG) training seminar for financial intermediaries in the UK.
It is designed to focus on the consideration of ESG factors when advising clients on their financial planning and investment decisions.
Training will be made up of a 90-minute structured CPD seminar encompassing the emerging trend, what role it plays in passive and active portfolios, and how ESG approaches differ among asset classes.
The firm said this will also focus on regulatory changes within this specific investment movement, with reference to The Investment Association’s Responsible Investment Framework and the issue of greenwashing.
The seminar will be led by Andrew Parry, head of sustainable investment at Newton Investment Management, part of BNY Mellon.
‘Meaningful, regulatory change’
BNY’s head of UK intermediary distribution, Michael Beveridge, said: “Demand for ESG-labelled funds has grown exponentially over the past five years and this has only accelerated since the covid-19 market sell-off.
“Intermediaries across the UK recognise that ESG will play an increasingly important role in conversations with their clients, and the impact that it has on their businesses from a regulatory standpoint.
“We believe our fit-for-purpose ESG seminar will assist them in planning conversations with their clients as well as with integrating ESG into their investment assessment process.
“Regulatory proposals as part of the EU Action Plan on Sustainable Finance may well have an impact on disclosure and fact-finding, and we believe this seminar will provide value to intermediaries as they prepare for this potential, yet meaningful, regulatory change,” he added.
Join the momentum
One of the latest firms to join the trend is Blackfinch Asset Management, which has rolled out four ESG adaptation funds.
These multi-asset unit trusts will be made available to the retail investment space.
According to the asset management firm, the four funds are “fully aligned with ESG considerations […] alongside being structured to meet the ongoing requirement for diversification across markets, geographies and asset classes”.
Blackfinch said it goes through a ‘positive screening’ to evaluate and invest in funds and firms that show a clear positive impact. All those who do not meet its criteria are ruled out.
“As a retail product, the funds will be highly regulated, benefiting from the oversight of multiple third parties, and will also be accessible to advisers on a wide range of fund supermarket platforms,” it added.
“They will not be subject to VAT, or 10% loss reporting requirements. Other tax efficiencies include clients holding a single investment line and CGT liability only on the sale of units in the fund.”
Jason Williams, head of distribution at Blackfinch AM, said: “The Adaptation Funds enable advisers to offer an ESG-approved outsourced solution which brings the benefits of greater investment scope and regulatory parameters.
“The new offering allows us to blend active and passive management styles, recognising the strengths of both approaches, as part of meeting client and adviser requirements.”