X

About

Advertise

Contact

Jobs

Tools for Advisers

Linkedin
Twitter
Facebook-f
  • News
    • In the Press
    • Politics and Finance
    • General
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Menu
  • News
    • In the Press
    • Politics and Finance
    • General
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Search
Close

About

Advertise

Contact

Jobs

Tools for Advisers

Untitled-1
Linkedin
Twitter
Facebook-f
  • News
    • In the Press
    • Politics and Finance
    • General
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Menu
  • News
    • In the Press
    • Politics and Finance
    • General
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Untitled-1
Linkedin
Twitter
Facebook-f

Beyond ESG: The Spectrum of Capital

IFA Magazine spoke to Wayne Bishop CEO of KSAM marking the 10 year anniversary of its MPS

by Kim Wonnacott
October 6, 2020
in Featured, News, Sponsored
Beyond ESG: The Spectrum of Capital
Share this story

The Spectrum of Capital is used in investing circles to explain the different approaches to investing when other issues such as ethics and sustainability are considered on top of the financial analysis. IFA Magazine spoke to Wayne Bishop CEO of KSAM marking the 10 year anniversary of its MPS.


King and Shaxson (KSAM) have been managing ethical portfolios since 2002, and with the flagship Model Portfolio Service (MPS) celebrating its tenth anniversary in 2020, now seemed the opportune moment to talk about topicality and transparency in the ESG sector.

A key point raised is the outset by Wayne Bishop, KSAM’s Chief Executive Officer, is that ethical investing isn’t a new concept. He reminds us that the first ethical screen arose back in 1758, although exclusions at that time by the Quakers, were driven in terms of their faith. The market has certainly come a long way since then and over the past decade the universe of available assets has grown dramatically.

When MPS first launched, the availability of ethical investible assets was limited; for every fund that passed KSAM’s screen many, many more did not. Now the market has changed. Over the last 5 years we have seen ESG outperform and in the opening eight months of 2020 saw environmental, social & governance (ESG) funds outpace their conventional rivals by as much as 20 percentage points, according to research by Trustnet.

According to Bishop, over the last decade ‘the myth that ESG investment meant sacrificing returns has been debunked.’ The phrase ‘Ethical Investing’ can sometimes make people think of avoidance, but there is a strong focus on the positive as well. KSAM does maintain a rigorous negative screen to avoid various ‘sin’ stocks, however the eco-system of available ethical opportunities has flourished since MPS started in 2002.

ESG investing has not only outperformed, but has done so with lower volatility. A key factor behind this, according to Bishop, are the oil and gas, mining and financial sectors, which are dominant in many indices but either lower or fully absent in ESG investments. Exposure to commodity prices has made mainstream indices more volatile sectors, and at the same time these three sectors have lagged the markets for a number of years. This accounts for a large part of the outperformance of ESG. Over time we will see the weighting and influence of these traditional sectors decline and we expect the gap in performance to narrow.

Whilst demand for ESG has often grabbed the headlines, as well as the rapid increase in the number and range of funds, one other key fact has been overlooked; the maturing of many of the favoured ESG sectors. At the turn of the century, wind energy was marginal and uneconomic without subsidies and investing in wind turbine companies such as Vestas Wind Systems was considered risky and optimistic while the concept of investing in solar farms in the UK would have been considered lunacy. Today, wind is a mature sector and Vestas is considered a more mature investment. In addition to the turbine developers and manufacturers, yield based investments in wind and solar farm operators (including those based in the UK) are available, and have proved to be resilient investments over the COVID crisis.

As Bishop explains further, “for years we were frustrated as investors, that one of the leading offshore wind farm developers and owners, Danish Oil and Natural Gas (DONG) was off limits from an ethical perspective. They changed focus and rapidly began disposing of their fossil fuel interests, renaming themselves Orsted. Not only has been good from an ESG perspective, it has been very good for shareholders.”

An increasing number of sectors nowadays have more viable investment options. To name but a few; social housing, better food ingredients (as well as vegan meat alternatives) and electric mobility.

Continue reading article…

Page 1 of 2
12Next
Previous Post

FCA delivers Bitcoin blow

Previous Post

HMRC bombarded by 5,000 malicious email attacks every day

Previous Post

Seedrs and Crowdcube merger ‘self-defeating?’

Next Post

People Behind the Product: Matthew Steiner, Stellar Asset Management

Next Post

Origo and new FinTech utilise Open Banking fact find to enable more suitable financial advice

Next Post

People Behind the Product: Pippa Gawley, Zero Carbon Capital

Related Posts

Pembroke VCT sees 2.3x exit in 12 months
News

Pembroke VCT sees 2.3x exit in 12 months

January 15, 2021
£122 billion inflation blow for pensioners and investors
News

Good news for investors as M&G Investments reduces annual charge across large proportion of OEIC funds

January 15, 2021
MP’s put FCA under the microscope
Finance on Social Media

London Capital & Finance judicial review

January 15, 2021
ThinCats
News

Supreme Court judgement in FCA’s business interruption insurance test case

January 15, 2021
UK business prepares to reopen
News

FTSE 100 lower as unsettling economic news overshadows stimulus optimism

January 15, 2021
‘A very difficult March for all participants in the housing market,’ says Ray Boulger
Feature

New UK levy on assets above £500,000 – what do private clients need to know?

January 14, 2021
Next Post
People Behind the Product: Matthew Steiner, Stellar Asset Management

People Behind the Product: Matthew Steiner, Stellar Asset Management

New Entrants | Zero Carbon Capital

Origo and new FinTech utilise Open Banking fact find to enable more suitable financial advice

People Behind the Product: Pippa Gawley, Zero Carbon Capital

People Behind the Product: Pippa Gawley, Zero Carbon Capital

Podcasts & Films

  • Put an atomic clock in your car, phone and on your wrist
    January 13, 2021
  • The Nexus Scale-Up Fund walk through
    December 21, 2020
  • Net4 x ARIE Capital webinar, hosted by CoInvestor
    December 18, 2020
  • How does Nexus Communicate with clients?
    December 18, 2020
  • Nexus Investments – Reasons for Advisers to be positive in 2021
    December 17, 2020
  • The Nexus Story
    December 16, 2020

Today’s Most Read

  • Wirecard scandal: EY defends itself in the Bundestag
    January 14, 2021

    @peter_IFAMAG reads Twitter so you don’t have to. The Wirecard Investigation Team meets again at the Bundestag today. Prompted by investor action following the Wirecard

  • Brexit agreement leaves UK financial services operating under no deal scenarios
    January 11, 2021

    Tej Patel, Partner and Regulatory Practice Lead at Capco, comments on the continued uncertainty facing UK-based financial services firms post-Brexit. Given that financial services were

  • OnePlanetCapital launch new EIS fund
    January 11, 2021

    OnePlanetCapital, a new sustainably driven investment house, has today launched a specialist sustainability EIS Fund to invest in businesses tackling climate change. The new OnePlanetCapital

  • Former Man Group and Octopus Real Estate executives launch Silbury Finance
    January 14, 2021

    Two experienced property finance executives, backed by funds managed by Oaktree Capital Management, L.P. (“Oaktree”), have launched Silbury Finance (“Silbury”), a platform providing bespoke senior

  • Supreme Court judgement in FCA’s business interruption insurance test case
    January 15, 2021

    The Supreme Court delivers judgement in favour of policyholders in the FCA’s business interruption insurance test case The Supreme Court has substantially allowed the FCA’s appeal on

  • London Capital & Finance judicial review
    January 15, 2021

    @peter_IFAMAG reads Twitter so you don’t have to. The London Capital and Finance vehicle lost 11,625 investors £237m in January 2019. Today brings news that

  • New UK levy on assets above £500,000 – what do private clients need to know?
    January 14, 2021

    By Paul Fairbairn, partner at Cripps Pemberton Greenish On 9 December the self-styled and in no way government-affiliated Wealth Tax Commission published their findings. This

  • Unpicking the jargon of responsible investing
    January 12, 2021

    George Robinson, Business Development Manager for VALA Capital, wrote the following article to help explain the difference between ESG and Sustainable investing.   Investors are increasingly

  • The ten secrets to mastering a last-minute tax return
    January 11, 2021

    Your self-assessment tax return deadline is due by midnight on 31 January. Last year, 11.1 million people filed a return on time, more than 70,000

  • Canaccord unveils new ESG portfolios on Embark Platform
    January 12, 2021

    Canaccord Genuity Wealth today launches an Environmental, Social and Governance (ESG) portfolio range available on Embark Platform. Financial advisers using the Embark Platform will now be

More Articles

Blackfinch Ventures: In the spotlight
Interviews

Blackfinch Ventures: In the spotlight

January 7, 2021
Making a positive difference at the cutting edge
Interviews

Making a positive difference at the cutting edge

January 7, 2021
Meet the manager of the M&G Global Listed Infrastructure Fund
Interviews

Meet the manager of the M&G Global Listed Infrastructure Fund

December 15, 2020
Par Equity is the bright EIS star of the North 
Interviews

Par Equity is the bright EIS star of the North 

November 23, 2020
What’s next for Mercia?
Interviews

What’s next for Mercia?

November 2, 2020
M&G Positive Impact Fund: Q&A with Ben Constable-Maxwell
Interviews

M&G Positive Impact Fund: Q&A with Ben Constable-Maxwell

October 21, 2020
People Behind the Product: Pippa Gawley, Zero Carbon Capital
GBI

People Behind the Product: Pippa Gawley, Zero Carbon Capital

October 7, 2020
People Behind the Product: Matthew Steiner, Stellar Asset Management
GBI

People Behind the Product: Matthew Steiner, Stellar Asset Management

October 6, 2020
People Behind the Product: Ewan Lloyd-Baker, Seismic Venture Partners
GBI

People Behind the Product: Ewan Lloyd-Baker, Seismic Venture Partners

October 5, 2020

About Us

​IFA Magazine – for today’s discerning financial and investment professional.

Published ten times a year, IFA Magazine has been winning a keen and enthusiastic following among Britain’s premier financial advisers, planners and paraplanners.

Newsletter

    Follow Us

    Linkedin
    Twitter
    Facebook-f

    © 2021 All rights reserved​ to IFA Magazine | Website by: Nivo Digital | Terms and Conditions

    Do NOT follow this link or you will be banned from the site!

    Adblock Blocker

    We have detected that you are using

    adblocking plugin in your browser. 

    Keep updated on the most important financial events 

    Make sure you are an informed

    wealth professional..

    IFA Magazine
    • News
      • In the Press
      • Politics and Finance
      • General
    • Featured
      • Podcasts & Films
      • Interviews
      • Events
      • Finance on Social Media
      • Jobs
      • MPS Report
    • GBI
      • Tax Efficient Investments
      • Open Investment Opportunities
      • People Behind the Product
      • GBI Magazine Issues
      • About GBI
    • Business
      • Regulation and Compliance
    • Magazines
    • The M&G Adviser Hub