Two of the strongest trends in investing over the past few years have been the move from active fund management towards passive funds and growth of interest in environmental, social and governance (ESG) issues.
But there are questions over whether the two can be compatible or whether increasing demand for ESG investing represents an opportunity for discretionary or active managers to attract customers.
One of the reasons why ESG investing is only possible with actively managed funds, many wealth managers argue, is because of the absence of well-established, easily verifiable ESG indices.