CMC Invest is the recently launched share trading and investment App from the CMC Markets D2C or Direct-to-Consumer division.
As this business expands and the app evolves new services will be added, let’s not forget that CMC opened a dedicated tech hub in Manchester for this specific purpose.
We have recently seen the launch of the firm’s flexible stocks and shares ISA, and the CMC Invest Plus account. However, CMC Invest hopes to also steal march on the competition in the area of ESG or Environmental, Social and Governance investing.
- Further reading: See what we think of CMC Invest in our expert review
How big are the addressable markets?
The total addressable market for self-directed investing and saving in the UK is thought to be worth as much as £3.0 trillion.
However, even the largest players have captured just a fragment of that, with market leader Hargreaves Lansdown having just under £40.0 billion of assets under administration, as of June 2022.
The UK Investment Management Association or IMA, found in its 2022 report, that its members manage some £89.0 billion in responsible investments.
Yet that is just a fraction of their total assets under management, of £11.0 trillion.
What is CMC Invest’s Strategy?
CMC Invest would like to capture a slice of the self-directed ESG investment market, perhaps tempting some clients away from a reliance on advisory and discretionary fund managers in the process.
To achieve this CMC Invest’s app offers clients access to a suite of environmental, social and governance analytics. Tools that allow investors to screen and rank companies, and funds on a wide range of ESG criteria.
For funds, these include an overall sustainability rating, ESG risk scores, and a list of contentious product areas, that investments within the fund are involved in, and there are similar fields and ratings for the ESG credentials of individual stocks as well.
All of the ratings and rankings systems are clearly explained within the App, which uses simple colour coding to give ESG investors an “at a glance” overview of an asset’s ESG suitability.
What’s more, the ESG analytics are available for free, to those who download the CMC Invest App and sign up for an account.
With over 35 years of finance experience, Darren is a highly respected and knowledgeable industry expert. With an extensive career covering trading, sales, analytics and research, he has a vast knowledge covering every aspect of the financial markets.
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