…but also opportunities
Across the investment industry, there has been, at times, too large a focus on short-term results of underlying companies, at the expense of longer-term objectives. Increasingly, we see a recognition by investors that attractive returns can be found through allocating to companies that are well governed, with a sensible, long-term strategy that considers all stakeholders – this will also align well with a sustainable investment framework. Identifying such companies that are also well placed to benefit from the large and growing public investment in thematic areas, such as combating climate change through efficiency and clean energy, offers a significant and long-term investment opportunity.
The move to embed sustainability into the investment process allows opportunities for those advisers who are already comfortable and competent in building and advising on sustainable portfolios to take on new business. The additional layer of sustainability/ESG-related reporting also offers scope to advisers to further build and demonstrate their core investment knowledge, which could enhance their credibility in the eyes of clients.
To find out more about how BMO Global Asset Management can help you offer good value sustainable core investments to your clients, please contact the BMO sales support team.