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In recent years, the investing environment has seen a major movement in favour of sustainable and socially responsible investments.
Investors are increasingly thinking about how their investments can help the environment and society, not just make money.
It’s not just about profit; it’s also about making a good impact on the world.
The Aviva Multi-Asset ESG Fund is one such option that has grown in popularity. This fund allows investors to connect their portfolios with their ideals and potentially earn good returns by combining financial evaluation with ethical concerns.
What is ESG investing?
ESG stands for Environmental, Social, and Governance, and it refers to a set of criteria used to evaluate the sustainability and societal impact of a company.
ESG investing includes taking these aspects into account in addition to conventional financial metrics when deciding which investments to make.
This method acknowledges that a business’s actions in these areas can have a big impact on its long-term financial results.
Opting for investments in ESG funds can offer benefits such as:
Alignment with Personal Values
Your investment choices resonate with your ethical principles and personal beliefs.
Advocating Sustainable Practices
Opting for ESG funds signifies your endorsement of companies committed to sustainable and ethical practices.
Potential for Long-Term Performance
ESG funds have the potential to surpass traditional funds in terms of long-term performance.
Mitigation of Investment Risks
Investing in these businesses may contribute to a potential reduction in your overall investment risk.
Emphasis on Transparency and Insight
ESG funds frequently prioritise transparency and disclosure, providing investors with clearer insights into the workings of their selected companies.
Support from Regulatory Measures
Ireland and the broader European Union are experiencing a notable increase in regulatory and policy support for ESG investments, creating a favourable environment for ESG investing and potentially driving sector growth.
Investing a Lump Sum in ESG Funds
If you have a lump sum of money, you can protect it from the eroding effects of inflation by strategically investing it.
We provide a wide array of solutions that are specifically designed for this purpose, among them are ESG (Environmental, Social, and Governance) funds.
To learn more, get in touch with us.
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What is the Aviva Multi-Asset ESG Fund?
The Aviva Multi-Asset ESG Fund is a great example of the growing interest in ESG investing.
It’s a fund designed to give investors a mix of different assets while also considering environmental, social, and governance factors.
The goal is to balance making good financial returns with having a positive impact on society and the environment.
Five Compelling Reasons to Consider Investing in Aviva Multi-Asset ESG Funds
A tailored fund for your needs
The varied selection of Aviva Multi-Asset Funds (MAFs) is intended to meet your needs as an investor with different risk profiles.
If your risk tolerance or circumstances evolve, True Wealth is available to assist you in transitioning to another Multi-Asset Fund aligned with a higher or lower risk and reward profile.
Ensuring a broad array of assets is crucial to achieving diversification across various market conditions. The Funds utilise three specific asset categories:
- Growth assets (such as equities), serving as a primary driver of long-term portfolio returns, albeit potentially exhibiting higher volatility.
- Defensive assets (like bonds), capable of generating modest positive returns over time and providing protection in less favorable market conditions.
- Uncorrelated assets (including absolute return funds), offering distinct characteristics compared to growth and defensive assets.
Aviva Investors has achieved worldwide acclaim for its Environmental, Social, and Governance (ESG) investment approach, employing a three-pillar strategy in the management of Multi-Asset Funds (MAFs).
ESG characteristics are integrated into MAFs, ensuring alignment with the Sustainable Finance Disclosure Regulation’s Article 8 requirements by promoting environmental and/or social characteristics.
Operated with a proactive strategy, these funds adeptly and decisively adjust to changing market dynamics, proficiently minimising risk and enhancing potential investment returns.
They dynamically reassign your investments as necessary, allowing for the targeting of specific sectors or regions identified as holding the most favorable potential value at any given time.
Global scale and experience
Aviva Investors manage over €87 billion in Multi-Asset Funds globally and own about €2.2 billion in assets that are held only in Ireland.
They have been involved in multi-asset investing for more than 35 years, and a group of over 55 experienced experts who are all committed to the nuances of multi-asset investment methods make their investment decisions.
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What is SFDR?
The European Union (EU) created the Sustainable Finance Disclosure Regulation (SFDR) to encourage environmental, social, and governance (ESG) factors in the financial industry.
The primary goal of SFDR, which went into effect on March 10, 2021, is to improve uniformity and transparency in the way sustainability criteria are incorporated into financial goods and services.
Aviva My Future ESG Lifestyle Strategies for Retirement Investing
Eight out of ten pension holders are worried about the effects of climate change, per research from Aviva.
Through investing in businesses that place a high priority on ethical standards, sustainability, and transparency, people can effectively match their financial decisions with their environmental ideals.
The Aviva My Future ESG initiative, which is exclusively accessible through Personal Pensions, Group Pensions, Executive Pensions, and Personal Retirement Bonds, customises investments to make a beneficial impact on the environment and society in addition to potential financial gains.
Aviva is committed to assisting you in your retirement planning. We offer a selection of three lifestyle strategies customised to your chosen retirement age and preferred option at retirement—Approved Retirement Fund (ARF), Annuity, or Lump Sum.
Read more about My Future ESG Lifestyle Strategies.
Why is sustainable investing important?
The two biggest challenges to humanity are the climate problem and rising inequality.
Sustainable pension and investing your savings improve not just your own future but also the future of the world and society at large.
According to research conducted by Aviva, you can reduce your carbon footprint by 21 times more only by making your pension green than by switching energy providers, going vegetarian, and giving up flying combined.
Verifying that the investments made with your savings and pensions are in line with your principles is a smart idea.
Does making sustainable investments require sacrificing returns?
Sustainable investing serves as a complement to conventional financial analysis rather than a replacement.
In addition to evaluating risk and return, sustainable funds also factor in a third risk – impact risk.
Actively managed sustainable funds actively seek well-managed companies that prioritise the well-being of their employees, communities, and the environment. Such companies often exhibit more resilient investment models and are positioned to thrive in the future.
Research from ESG Book indicates that integrating an Environmental, Social, and Governance (ESG) approach into investment methodology has the potential to enhance returns over the medium to long term.
Make the most of your investments with True Wealth Advice
We understand that your financial goals are unique, and our experts are committed to providing personalised guidance to help you achieve them.
Furthermore, we have extensive expertise in sustainable investing; we can provide you with techniques and insights that match your beliefs and help you build a financial portfolio that is more environmentally and socially conscientious.
Get in touch now!
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All our content has been written or overseen by a qualified financial advisor. However, you should always seek individual financial advice for your unique circumstances.
Aviva Life & Pensions Ireland Dac, trading as Aviva Life & Pensions Ireland and Friends First, is regulated by the Central Bank of Ireland.
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