Retail investors are falling out of love with woke ESG funds as they are underperforming, a survey suggests.
A poll of 276 financial advisers by investment firm Schroders reveals a diminishing appetite for ‘sustainable investment solutions’ from clients.
It showed that just 17 per cent of advisers had seen a small increase in demand for such products in recent months, down from 60 per cent in November 2021.
James Rainbow, head of UK at Schroders, said: ‘You are definitely seeing people backing away from asking about sustainability from an investment context.’
ESG investing targets companies that meet ethical targets but has been criticised for box-ticking as well as accusations of ‘greenwashing’.
Falling out of love: A poll of 276 financial advisers reveals a diminishing appetite for ‘sustainable investment solutions’ from clients
Rainbow said investors had also noticed that ESG investments were not doing so well.
‘I think people strictly from an investment performance perspective have seen some pretty challenging returns – as we went through an energy crisis in particular,’ he added.
The findings were part of the Schroders UK Financial Adviser Pulse Survey.
