Investor demand for new actively-managed environmental, social and governance (ESG) funds is growing, and a report from Broadridge Financial Solutions documents that interest is shifting towards funds that employ best-in-class positive screening, thematic, and outcome-oriented funds.
The world’s five largest asset management companies, BlackRock, Vanguard, UBS, State Street, and Fidelity International, hold USD22.5 trillion in assets combined, which is higher than the GDP of the United States.
European asset managers’ average assets fell by 1.5 per cent over the first half of the year, as government and central bank intervention helped offset most of the damage inflicted in the coronavirus sell-off.
The search for alpha is expected to lead to a long-term shift to higher emerging markets allocations, both in equity and fixed income, according to a survey of institutional investors by Vontobel.
Divestment is the last resort for responsible asset owners seeking to create change, says Storebrand
Several large European banks including BNP Paribas, Credit Suisse, ING, Natixis, Rabobank, and UBS made the headlines earlier this month when environmental groups alleged that they had financed some USD10 billion of oil trading from the Amazon rainforest over the past decade, despite its deleterious impact on the environment and the livelihoods of the indigenous peoples in the region.
Active managers must look beyond ESG ratings to add value over passive sustainable funds, says Zadig
A revamp of the Oyster Sustainable Europe fund was announced in June, with European equities specialist Zadig Asset Management being brought in to manage the portfolio.
Value investing could see a revival as economic activity picks up in the wake of the Covid-19 pandemic, as asset managers predict that lowly-rated stocks could outperform in the upturn.
Europe is poised to continue outperforming the US for the rest of the year, according to New York-based global asset manager Neuberger Berman, as uncertainty over the outcome of the US presidential election and the ongoing coronavirus pandemic continue to weigh on markets.
Impax Asset Management says there will be “winners and losers” in the economic transition to a more sustainable economy, as trends continue to be accelerated in the post-pandemic rebuilding process.
Piloting through Covid-19 requires investment committees to emulate aircraft industry in putting safety first
The investment industry needs to emulate the aircraft industry in the way it learns from past mistakes, in order to successfully pilot investors through the Covid-19 crisis, according to new research from the Thinking Ahead Institute.
Tectonic shift in UK stock market ownership as US asset management giants unleash low-cost passive investing boom
Over a third of all shares on the UK’s FTSE 100 and 250 indices are now owned by North American asset managers, as the popularity of low-cost passive index funds and ETFs has surged.
European ‘zombie’ companies have three to six months' runway before defaults rise, says Aviva Investors
Concern is growing over a likely spike in defaults among so-called ‘zombie’ companies that have stayed afloat during the coronavirus pandemic by relying on government stimulus and increasing their debt loads, but will struggle to keep servicing loans as government schemes roll back.
Breckinridge sees further tightening in US corporate debt spreads after wild bond market swings in H1
Fixed income managers have seen a hectic first half of the year in 2020. In the US, a typical year’s worth of new issues was printed in the space of just four months, as the onset of the pandemic forced companies to take urgent action to shore up their finances.
New report unmasks financial institutions failing to deliver on ‘corporate stakeholder purpose’ declarations
Companies that have promised publicly to run their business for the benefit of all stakeholders have handled the Covid-19 crisis and social and racial inequality worse than companies with no such commitment, a new report from The Test of Corporate Purpose finds.
Written by Sacha Bernasconi, portfolio manager of the SYZ Green Bonds Fund.
The catastrophe of Covid-19 has given the world one silver lining. A wake-up call. A sobering vision of the future, and the economic and social devastation climate change will bring. As responsible investors, we must be mindful of this portent of the future and accelerate our efforts in delivering progressive action. It is time to move the dial.
Investors continued to prefer “safe haven” money market funds as they shifted assets back into all types of open-ended funds in the second quarter, buoyed by a strong recovery in global financial markets, according to data compiled by The European Fund and Asset Management Association (EFAMA).
Pension funds should allocate towards infrastructure and growth assets as government bonds now provide “return-free risk”, says Baroness Altmann
Pension assets could support the UK economy in the fight against coronavirus, if they were invested in infrastructure such as social housing and environmental protection, according to Baroness Altmann, who spoke at a pensions conference this month.
Environmental, social, and governance (ESG) factors have grown more important since the onset of pandemic, with a new survey sponsored by BNP Paribas Asset Management showing the ‘social’ aspect coming into greater focus.
TISE reports highest ever new securities listings in first half as chief executive prepares to depart
More new securities were listed on The International Stock Exchange (TISE) in the first half of 2020 than in the same period of any other prior year since the exchange opened in 1998.
Investors that bought into the stock market recovery in April and May largely banked their gains in June, with equity funds shedding GBP1.2 billion in outflows, according to Calastone’s latest Fund Flow Index.
Refinitiv has launched ESG scores for funds, allowing comparisons at the fund level for fund managers, advisers and investors, as the world of sustainable investing continues to boom.
A culture shift is needed in the institutional investment industry to prioritise ‘soft’ factors like diversity rather than a single-minded focus on financial performance, says not-for-profit research group the Thinking Ahead Institute.