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Nov 18, 2022

Does Direct Indexation Have ESG’s Complexity Problem?

Direct indexation and environmental, social and governance (ESG) investing aren’t as popular with financial advisors as industry news coverage would suggest—just two in five advisors have incorporated ESG into a client’s portfolio and only three in 10 advisors have used direct or custom indexing strategies with clients, according to our advisor research conducted in association with Horsesmouth.

Nov 14, 2022

How Do You Build a Successful ESG Strategy?

While ESG (environmental, social and governance) investing was one a niche strategy, it has become a dominant theme for investment managers across various industry segments. Growth of AUM over the past several years demonstrates this rising interest—AUM grew from $22.8T in 2016 to $35T in 2020 and to over $50T in early 2022.

Sep 27, 2022

The Increasing Importance of ESG in M&A Dealmaking

The need to contend with climate change is becoming increasingly apparent, as extreme weather events become more commonplace. Unsurprisingly, this has led to increased interest in investment strategies that place greater emphasis on environmental, social and corporate governance (ESG) considerations. Globally, ESG assets are on track to surpass $53 trillion by 2025, which would account for more than one-third of the projected total global AUM of $140.5 trillion. With Europe leading the way in ESG momentum, we surveyed 150 European dealmakers about their views on how ESG is affecting M&A.

Sep 22, 2022

Advisors Who Sell ESG Products are Skeptics Too

After more than 30 years, environmental, social and governance investing (ESG) seems to be finally having its day. Stories abound about the record flows, soaring investor interest and surge of new products in the ESG space. But many financial advisors are much less enthusiastic. As noted in our "Warning: It Won’t Be Easy to Get Advisors to Sell ESG" blog, just two in five advisors currently sell ESG products to their clients(according to research that we conducted in partnership with Horsesmouth), and less than one-third of those advisors ask every client if they are interested in aligning their investments with their values.

Sep 21, 2022

The State of ESG Investing in 2022: Trends and Regulations

Amid a variety of global events, 2022 has been a challenging year for many ESG investment strategies. Energy companies, most often associated with encouraging fossil fuel dependency, have performed well given the spike in energy prices driven by supply chain issues and the war in Ukraine. However, many ESG strategies screen out energy companies over concerns about their impact on climate change. At the same time, many ESG-related investment strategies have been overweighting allocations to technology stocks, which have performed relatively poorly for most of the year.

Sep 6, 2022

The Evolution of ESG Investing and Regulation

The acronym “ESG” stands for environmental, social and governance. More importantly, the term ESG has become synonymous with the concept of “sustainability.” In the capital markets, ESG criteria are a set of standards that should help to assess an organization’s operations and evaluate potential investments in securities issued by those organizations.

May 11, 2022

The Foundations of Good ESG Governance and Policy

Momentum behind ESG investing continues to grow. Firms who develop a solid approach to incorporating ESG policies at both the firm and the fund level will have a competitive advantage over their peers.

Apr 19, 2022

Anticipating Investors’ ESG Needs

Fully integrating a robust ESG approach can be a steep learning curve. As interest in ESG increases, both regulatory pressure and investor expectations can change quickly.

Fund managers would do well to be prepared and get ahead of these needs.

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