Investments  

Understanding risk and reward in an ESG portfolio

This article is part of
Guide to Responsible Investing

"Keeping diversification to the fore of our thinking helps a mindset that allows us to search out income opportunities and manage risks. A key focus for us is the sustainability of income, especially in the context of ensuring that we don’t erode our clients' savings by chasing high, but ultimately unsustainable, yields or investing in companies that pay a high dividend but make a loss in terms of their share price performance.

"We maintain a key focus on total return and believe that, in the current environment, a yield of around 4 per cent is achievable while also maintaining scope for growing capital over time."

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David Thorpe is special projects editor at FTAdviser