Social investment outsourced to discretionary managers?

Social investment management may be outsourced to discretionary managers, as one body reveals 19 per cent of independent financial advisers (IFAs) use this method to conduct their investment business.

Financial research company Defaqto found alternative investments - such as socially responsible assets - are highlighted as a specialist area by 70 per cent of those hired by IFAs, which may indicate the sector is achieving new prominence.

Fraser Donaldson, vehicles and insight analyst for funds at the group, warned firms using the services of discretionary managers should be sure they are getting what they pay for.

He explained: "They should ask what percentage of portfolios are invested in alternative investments and what success they have had in managing this asset class," adding the experts should not just pay "lip service" to the use of socially responsible assets and similar funds.

Offshore banking is also covered in the guide and could be a viable alternative for those seeking good returns on their investment. ADNFCR-2318-ID-800019133-ADNFCR