U Ethical’s Director of Strategy and Distribution, Erica Hall, was recently interviewed by Acuity Magazine on the growing role of ethical investing. The discussion highlighted how aligning portfolios with client values can strengthen relationships, differentiate advisers in a competitive market, and support long-term investment success.
One of the central messages is that ethical investing is about alignment, not just exclusion. For some clients this may mean avoiding fossil fuels or animal cruelty, while for others it’s about actively supporting renewable energy or social housing. The key takeaway: ethics and performance are not mutually exclusive; investors can pursue both financial returns and meaningful values alignment.
The momentum is undeniable. According to RIAA, responsible investments now total A$1.6 trillion in Australia (41% of all funds under management) and NZ$207 billion in New Zealand (56% of assets under management). This rapid growth shows that responsible investment has firmly entered the mainstream and is increasingly shaping client expectations.
For advisers, this represents both an opportunity and a responsibility. Clients want confidence that their money is working in ways that reflect their beliefs. That requires guidance through a complex landscape from greenwashing and regulatory shifts to the nuances of ESG reporting. Advisers who can provide this clarity not only strengthen trust and loyalty but also gain a clear point of differentiation.
Research reinforces the case: integrating sustainability factors can enhance long-term, risk-adjusted returns. As Erica notes, nuance is essential, blanket exclusions may limit diversification, whereas thoughtful thresholds and careful portfolio construction can balance client values with investment integrity.
Ultimately, clients value both alignment and stewardship. They want competitive returns, but also the assurance that those returns are generated responsibly. For advisers, connecting investment strategies with client values is a direct path to happier, more engaged clients and a powerful way to demonstrate leadership in a shifting market. Ethical alignment is no longer a “nice-to-have”; it is a genuine competitive advantage.
Learn why aligning portfolios with client values is becoming a competitive edge for advisers.
