March 2020 Newsletter
News & Commentaries by Ron Robins
Latest Podcast: ESG Funds Outperform in Market Downturn. And more… “ESG funds outperform in market downturn according to research by Bloomberg and Morningstar! One big reason is they are big on tech: the FANG’s — Facebook, Amazon, Apple, Netflix, and Alphabet (Google). Consumers spending more time at home due to COVID-19 are buying and using the products and services of these companies. Other news covered too.”
By Ron Robins
The ESG Fund Universe Is Rapidly Expanding. “Record flows, strong performance, and other takeaways from the 2019 Sustainable Funds U.S. Landscape Report.”
[COMMENTARY] Jon Hale describes the situation for 2019 and early 2020. With the downdraft in the markets of the past two weeks, it remains to be seen how ESG funds perform going forward. However, early indications are that ESG funds are doing better than their non-ESG brethren.
The ESG Fund Universe Is Rapidly Expanding, by Jon Hale, March 19, 2020, Morningstar, USA.
‘FTSE companies urgently need to raise their game on CO2 reporting’. “Alexia Perversi and Andrew Jones of Mazars say a recent study by the auditing firm casts huge doubt on the credibility and utility of carbon disclosures in year-end reports.”
[COMMENTARY] The researchers’ main complaint is the non-standardized way the data is displayed as well as the data’s utility to understanding how the data might affect a company’s operations.
‘FTSE companies urgently need to raise their game on CO2 reporting’, by Alexia Perversi, March 18, 2020, Ethical Corporation, UK.
Point of No Returns. “A ranking of 75 of the world’s largest asset managers’ approaches to responsible investment.”
[COMMENTARY] Provides an insightful ranking. The five given an ‘A’ grade are RobecoSam, BNP Paribas Asset Management, Legal & General Investment Management, APG Asset Management, and Aviva Investors.
Point of No Returns, by ShareAction staff, March 2020, UK.
ESG Study: How Institutional Investors Embrace Responsible Investing. “Franklin Templeton commissioned a comprehensive study across 21 markets, to see the extent of how responsible investing is incorporated into investment decisions. We highlight four themes to track the way asset owners are adopting responsible investing and ESG considerations over time.”
[COMMENTARY] It’s a really interesting read for all investors.
ESG Study: How Institutional Investors Embrace Responsible Investing, by Team of Franklin Templeton Investments, March 5, 2020, Advisor Perspectives, USA.
Swiss bank report queries better returns for ESG investments. “ACCORDING to the latest study from Credit Suisse’s in-house think tank the jury is still out on whether ESG and sustainable investing really outstrips traditional investment offerings.
Published by the Credit Suisse Research Institute, in collaboration with London Business School and Cambridge University professors, the 2020 edition of the Credit Suisse Global Investment Returns Yearbook features a dedicated chapter on ESG investing.”
[COMMENTARY]It’s hard to argue with the credibility of the researchers involved. It will take other prestigious individuals and entities to argue the case for ESG!
Swiss bank report queries better returns for ESG investments, by Tom King, March 2, 2020, The Asset ESG Forum, Asia.
ESG Funds Might Soon Have to Prove to SEC They’re Actually ESG. “The Securities and Exchange Commission wants to know whether money managers are engaging in false advertising by saying funds are devoted to doing good when the reality is much murkier.”
[COMMENTARY]I think the SEC is just trying to make ESG funds look bad so as to supportcarbon-intensive industries.
ESG Funds Might Soon Have to Prove to SEC They’re Actually ESG, by Benjamin Bain, March 2, 2020, Bloomberg Green, USA.
Go Long: Why Long-Term Thinking Is Your Best Short-Term Strategy, by Dennis Carey, Brian Dumaine, Michael Useem, and Rodney Zemmel, Wharton Digital Press 2018.
“For anyone who is concerned about the importance of forcing longer-term objectives into a public company short-term mindset and who wants to learn more about some of the heroes of this effort, this book is a godsend. Indeed, it should be mandatory reading for the CEOs and boards of all public companies….…David M. Rubenstein, Co-Founder & Co-Executive Chairman, The Carlyle Group.