Impact of ESG on UK Fund Distribution

A guide for asset managers to understand the current trends driving the market, enabling them to adapt their distribution, marketing and product strategies.

This report offers the most comprehensive analysis of the changes driven by the adoption of ESG across the whole fund distribution landscape. It features:

Emphasis on looking below the headlines and analysing trends across end clients, advisers, and other firms.
Explanations of what is changing, and why it is changing.
Analysis of how factors currently driving shifts may affect future developments.

The main areas covered in this report:

End investors

Shifting perceptions around ESG since start of pandemic; factors driving those changes.
Issues clients are focusing on.
Tools used to assess ESG products.

Focus on differences in perceptions and priorities across age groups – key for asset managers to adapt messaging to target client groups.

Financial advisers

Adopting ESG in different ways and at different speeds.
Segmentation – we find four main groups based on knowledge and requirements. For asset managers it is crucial to tailor approach accordingly.
Analysis of advisers’ knowledge and adoption of ESG components: integration, stewardship, exclusions, impact.
Impact on other players – wealth managers, specialist consultants, rating agencies, platforms.

Brand awareness

Advisers’ perceptions on providers of ESG products.

Direct-to-consumer services

How direct platforms are adapting their offering, select lists and educational initiatives to increased interest in ESG from self-directed clients.

Fund flows & changes in product supply

Fund flows to ESG products in 2020.
Analysis of changing patterns in supply of ESG products.

Forward-looking view

Analysis of areas impacted by ESG across the UK distribution landscape (beyond fund flows).
Analysis of ESG drivers and barriers.
Scenario analysis (3-5-year horizon) based on different potential degrees of disruption caused by the adoption of ESG among advisers and end investors.