ESG Investing  

Guide to Responsible Investing

  • Describe some of the challenges over responsible investing
  • Identify ways of categorising different ESG funds
  • Explain some of the problems with ESG stocks
CPD
Approx.60min
Guide to Responsible Investing

Introduction

Responsible investing is one of the most popular forms of investing currently, and has plenty of attention across the investor age spectrum.

But as the concept has moved mainstream, so it poses a number of key questions. What exactly is responsible investing? How do we categorise it? And what role is there for the fund manager in ensuring their stocks follow responsible investing principles.?

Even when the fund manager believes they have invested in the right stock, they can still get caught out; and they still have to apply the same investment principles as any other investment.

As the fund management industry embraces the concept of reponsible investing wholeheartedly, advisers are faced with challenges of understanding it and selecting the right fund. This guide describes some of the challenges and is worth an indicative 60 minutes CPD

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. According to Hugh Cuthbert, what is the best way to achieve change in companies?

  2. According to the second feature, what is an 'Article 8' fund?

  3. According to the second feature, ESG is not the 'natural habitat' of value investors, true or false?

  4. According to the third feature, analysing the risk of an ESG stock is completely different to analysing the risk of a non-ESG stock, true or false?

  5. Why is Martijn Kleinbussink so focused on quality investments, according to the third feature?

  6. Why did James Budden sell out of some Tesla stocks?

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You should now know…

  • Describe some of the challenges over responsible investing
  • Identify ways of categorising different ESG funds
  • Explain some of the problems with ESG stocks

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