ESG Investing

How demand in ESG is growing - in passive funds too

How demand in ESG is growing – in passive funds too

There is no doubt that there is a growing interest in environmental, social and governance (ESG) investments, including in the passive fund space. Whether it’s documentaries such as Blue Planet, or the politics around the Paris Agreement on climate change, the Extinction Rebellion protests or 16-year-old schoolgirl Greta Thumberg sailing on an eco-friendly yacht to speak at the next UN summit in New York, public consciousness has awakened to the very real threats facing our world. Investors want to make ‘green’ decisions, because they are realising their cash can make a difference and give them a voice – whether that’s relating to the company’s carbon footprint, executive pay schemes or workforce diversity. Interest in this area is growing to the point that institutional investors are not only allocating billions of pounds to ESG solutions, but they are even choosing ESG-themed portfolios as a default. Recent examples include the £11 billion Co-op pension scheme choosing a Futu…

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Muddying the Waters

Muddying the Waters

Ethical investing is most definitely in! In the last 5 years, the business of Socially Responsible Investing has seen huge growth, as investment “consumers” start to think more carefully about the effect they have on the world in a myriad of different ways, leaving fund management groups scrambling to react, (or board the bandwagon, depending on your view). There are now more than 200 funds available to UK investors, and flows via platforms (i.e. from retail investors) were up 19% in the first half of 2018, according to ESG Clarity an ethical investment-focussed website for investors. Amundi, a prominent ETF fund manager, has announced it will fully incorporate ESGinto its’ money management and voting practices by the end of 2021, with a view to influencing Corporate managements across the Globe. Pressure is mounting on fund managers as Local Authority pension schemes are being pressed to divest their…

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