KEN BAKSH ON ESG FUNDS

We've seen a lot of ESG this year.  All funds now have some statement of compliance, and IFAs are forced to consider it for all customers.   As IFAC partner SARASIN recently pointed out, there is two ways to tackle non-ESG stocks - become a shareholder and start voting, or sell up and invest in ESG approved funds.  

For those who are minded to be cynical, and for those clients who want money and returns at all cost, then it might be worth a look at the Merchant Trust. Podcast series.

In summary the fund presents a slightly geared value approach...brought back from 40% to current 16%..a sensible move.  The fund includes above average weightings in tobacco and oil which might not suit all, but are an undisputed dividend hero, and I have confidence in their ability to pay current divis i.e. 5% ish yield (about the same as Bailey short term inflation forecast issued this month!