But Mr Parker feels that a weight of capital has been deployed into a relatively small number of shares, and this has caused share prices of some of the most attractive stocks to rise; for this reason Mr Parker says he prefers to get his ESG exposure from actively managed products at this time.
David Barron, head of index equity and Smart Beta at Legal and General Investment Management says that while indices can give investors a particular type of market exposure, the indices themselves are not a set of ESG rules, and so are just as likely to be just as subjective as are ESG portfolios put together by active fund managers.
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David Thorpe is special projects editor of FTAdviser and Financial Adviser
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