What are the challenges faced when investing responsibly?

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What are the challenges faced when investing responsibly?

INDUSTRY VOICE: Assessing materiality, the balance between engagement and divestment and the recurring question over whether there is a performance penalty associated with responsible investment are just some of the challenges faced.

BMO Global Asset Management launched Europe's first retail ethical fund in 1984. As a pioneer in the field for over three decades, it's rewarding for us to see responsible investing entering the mainstream.

"There has been an explosion of demand" says co-head of the Responsible Investment team, Alice Evans. "We think what's been driving that is a real cultural shift, this sense that people are understanding that what they do with their savings, with their pension money, is not disconnected from the real world. Their money means something and they want it to reflect their values and concerns." 

In the video below, Alice and fellow co-head, Claudia Wearmouth, talk about the challenges the team face including assessing materiality, the balance between engagement and divestment and the recurring question over whether there is a performance penalty associated with responsible investment.

They outline their priority areas for engagement over the coming years and the team share what inspires them to work in the field.

Capital is at risk and investors may not get back the original amount invested.

 

 

To watch a longer version of this video including how the team work with portfolio managers and the independent Responsible Investment Advisory Council - and to find out about our responsible investing solutions, click here.

© 2018 BMO Global Asset Management. All rights reserved. BMO Global Asset Management is a trading name of BMO Asset Management Limited, which is authorised and regulated by the Financial Conduct Authority.

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