At Pareto, we believe that Environmental, Social or Governance (ESG) issues are an increasingly important consideration for all investment decisions as companies that have weaknesses in respect of ESG matters could expose investors to undue future risks. Accordingly, when reviewing investment options for our clients ESG issues are fully considered alongside the potential future sustainable long term capital growth.
The Pareto Investment Committee continues to work closely with investment managers to assess their approach to ESG matters. Before approving any fund or product for recommendation to our client, the Investment Committee will review their Responsible Investment policy and wider approach to ESG. The United Nations Principles of Responsible Investing are a key metric in this respect, and we are pleased to be able to confirm that all of the underlying fund managers used within our central investment proposition are signatories.
However, although we have embedded ESG considerations within our core investment selections, we also understand that each client will have their own view on the importance of ESG issues. Likewise, the funds that we consider for clients’ portfolios differ greatly in their approach to ESG issues.
Our advisers will discuss the different aspects of ESG with all clients prior to making any investment recommendations. Dependent on these discussions, a full ESG questionnaire may be completed to fully capture the client’s personal views. Those views are then used to help tailor the most suitable portfolio to meet the client’s investment objectives; we will always aim to ensure that our clients our invested in accordance with their own views on ESG matters, wherever possible.