Ardent clients and their guests enjoyed an afternoon of good company and a fascinating glimpse into the world of investing when they recently attended a talk by a leading City fund manager.

They heard first-hand how fund managers work and how they generate growth potential, even when the stock market is volatile, as it has been so far in 2022.

The presentation was held at York’s beautiful Middletons Hotel and was delivered by Damien Lardoux, head of impact investing at our preferred London-based fund manager, EQ Investors. The company has focused on sustainable investing since 2008, as it shares our belief that investing can be a force for good.

As you and your clients may also be interested in how professionals generate growth potential in the current uncertain climate, read on for some of the key takeaways. Before we do, let’s look at what a fund manager does.

Fund managers are responsible for an investing strategy

As highly trained investment experts who research, develop and implement investment strategies, fund managers decide which companies to invest clients’ money into. They also determine how long the investments should be held for, and when is the best time to sell them.

Fund managers will have different styes and deal with a variety of investments, including pensions, trust funds and hedge funds. In Damien’s case, he specialises in environmentally sustainable investing using Environmental, Social and Governance (ESG) funds.

As a professional fund manager is more likely to spot growth potential that a DIY investor might miss, they can provide peace of mind for your client.

Fund managers pick companies to invest in extremely carefully

Being a DIY investor is very time-consuming and entails hours of research if you are going to do it properly. While there are several investment apps, social media commentators and websites providing information, it can be difficult to know who to trust and what information is credible.

With fund managers, your client has the peace of mind that their money is being looked after by an expert who has taken the time to really understand the companies they are investing in. Typically, fund managers carry out intensive analysis of the business they are considering, to ensure (as much as possible) that it provides the levels of growth potential they seek.

This means they are more likely to find opportunities to grow your client’s wealth, even when the stock market is as uncertain as it has been in 2022.

Fund managers seek growth potential in volatile markets

During the presentation, Damien talked about the war in Ukraine, soaring inflation and the effects these are having on the world economy. While many DIY investors could become unnerved by 2022’s events, the knowledge and experience of fund managers means they are better placed to cut through the “noise” of the media.

They can do this because they monitor geopolitical events and economic conditions across the globe closely. This means they usually have a deep understanding of the underlying reasons behind events, and how they might affect investments in the future.

This allows them to make decisions based on what’s best for your client’s money, not on an emotional reaction that could be regretted later. Furthermore, they are better placed to find growth potential in a volatile stock market.

They can help clients grow their wealth using responsible investments

Today, increasing numbers of investors are interested in placing their money into sustainable investments, which today are better known as “ESG funds”. Working with a fund manager who specialises in these increases the chances of growth potential.

It also decreases the likelihood of your client’s money going into “greenwashed” funds. This is where businesses are made to look more environmentally responsible than they actually are, in a bid to attract ethical investors.

During his presentation, Damien provided examples of companies that he had decided to invest in, which included healthcare firms, plastic waste businesses and companies that reduce inequality in education. He also explained how EQ Investor’s Future Leaders Portfolio also invests in companies that deliver clean water.

If you have clients who want to expose their money to potential growth in a way that is environmentally and socially responsible, fund managers like Damien can help.

Get in touch

If you would like to discuss any of the points raised by Damien during his presentation, or how we might be able to help your clients, please contact us on hello@ardentuk.com or call 01904 655 330.

As an award-winning financial advice company that was a 2022 VouchedFor Top Rated firm, you will have peace of mind that your clients will receive excellent advice and the highest quality service.

Please note

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.