Despite the success of this regional advice hub, advisers like Kane Leersen aren’t out to rule the world. Instead, they have an ambition to “grow by good” by serving the people that make up their local community.
Another significant recruit has joined the new venture, with ex-Mutual Trust family office adviser Angus Mann bringing a wealth of experience and a reputation for holistic client care to Viola Private Wealth.
It never hurts to ask
Speaking to a leading financial adviser this week about investing, a single comment stood out. “When we offered clients an ethical investment option within their portfolio almost all of them took it up immediately”, he explained.
I’ve been involved in similar conversations with many clients in recent month, whether on the topic of the strong performance of the fossil fuel sector or the headlines dominating gambling and casinos.
Responding to these questions as an adviser, or just as a person, has become quite straightforward; we don’t think it is appropriate to be allocating capital to these sectors anymore.
Given what we know today, and what clients are increasingly demanding, my view is that they simply don’t warrant an allocation for most people. That isn’t to say they shouldn’t exist, but rather that I’m happy leaving it to someone else.
In putting together the agenda for our upcoming ESG Retreat in Tasmania, it became clear there is a distinctly different community evolving in responsible and sustainable investment. This community is driven by collaboration and sharing a common goal, something the investment industry isn’t necessarily known for.
Ask any advisers how they are going, and the answer is always the same: ‘I’m super busy’. Regulatory, compliance, client, and investment demands are among just a few of the pressures placed on advisers, which means time and effort is at a premium. But it feels time to ask the question: how serious are we on ESG?
As what could be considered a recent ‘convert’ to ESG, it is clear there is a groundswell of support from clients young and old, and no lack of options available, giving both cohorts the ability to construct portfolios more closely aligned with their evolving expectations.
The regulator is clearly taking a greater focus on the sector, identifying and calling out claims of ‘net zero’ assets, portfolios, ESG or green strategies. This is an important step in the evolution of the industry.
While greenwashing is widely derided, I believe it is actually central to the broader acceptance of ESG or ethically focused strategies as it forces investors to look closer and become more engaged with their investments.
The last few years have proven there is no performance impediment and there are a host of new sustainably-focused investment options coming to the market. What stands out as a challenge, though, is building a truly impactful portfolio solely via low-cost or passive strategies, given ESG considerations are inherently qualitative rather than quantitatively driven.
As part of a dwindling pool of advisers, we all have a role to play in this transition, and it will be a spectrum of outcomes, rather than being binary. One thing we cannot forget, however, is the powerful role that capital flows can have on creating change.
