UK technology company EV (EValue) has updated its risk profiling tool for financial advisers to include questions for clients around ESG.
The new questionnaire and risk rating service is focused on income, mapping clients’ capacity for loss to funds providing sustainable levels of income in retirement. The new questions further assess a client’s preference for ESG.
A March 2021 EV study found 94% of consumers consider at least one ESG factor to be important when making decisions about their investments for growth and/or income.
ESG fund options are on the rise, including for income. “There are so many options in the UK for income, outside the traditional names,” ES R&M UK Equity Income Fund manager Dan Hanbury told ESG Clarity earlier this year, for example.
““Whether it be energy, pharmaceuticals or industrials, for example, there are businesses which are either changing how they work, focusing on more sustainable future income streams, or already tackling sustainability challenges. Portfolios can be built to sustain a much greener future.”
Financial advisers can sign up for introductory access to the EV tool before it launches fully later in the year. It is available across 5, 7 and 10 risk profiles. After the initial period it will cost £40 per license per month.
Gary Wheeler, chief commercial officer at EV, said: “Understanding a client’s risk appetite while delivering a sustainable level of income through appropriate investments is paramount to an adviser’s suitability process.”