News & Commentaries
3 takeaways on trends in advisor investing.
"Advisors this year, for instance, were asked about their use or recommendation of environmental, social and governance funds. Replies indicate that 26 percent of respondent advisors currently use and/or recommend ESG funds, and 20 percent plan to increase their use/recommendation of them over the next 12 months." [COMMENTARY]Finally, a significant number of US advisors are…
When will “socially responsible investing” become just “investing”?
"It may be hard to imagine, thinking back to the freewheeling pre-crisis days, but one legacy of the crisis could be a permanent shift in the finance industry′s moral compass. Yes, really." [COMMENTARY]Good perspective on how the investment industry has changed — and adopted socially responsible and ethical investing — since the financial crises ten…
Asset management roundup: Survey predicts ESG-related ETF boom.
"More than four-fifths of professional investors expect investment into environmental, social and corporate governance (ESG) related exchange-traded funds (ETFs) to grow over the next five years, research from State Street Global Advisors (SSGA) has found." [COMMENTARY]So far, ESG screened ETFs have attracted a tiny amount of assets. However, this could all soon change as Vanguard,…
Advisers still think ESG strategies underperform.
"A study released Monday by Cerulli Associates found that while more than 50% of advisors have either used an ESG product in the past 12 months or will use an ESG product in the next 12 months, 35% of those who don’t use ESG investments cite concerns about lowering client performance. The Cerulli survey also…
Divesting sectors. The impact on returns. Evidence that oil divestment may not impact returns.
"Grantham and colleagues have looked at the S&P500, over the last 28 years, 60 years, and 90 years; excluding a major sub-component sector each time. Grantham′s overall conclusion it that it didn′t make much difference in return – although some might argue at the max range of 50bps that compounded over 28 years may be…
Investors Are Right To Consider ESG Risks, Says New Report By Corporate Governance Association.
"Investors are right to consider environmental, social and governance (ESG) risks because they can impact the worth of intangible assets which make up more than 80 percent of company value, said a new report by the Society for Corporate Governance." [COMMENTARY]Also, the report cites concerns about the accuracy of many ESG rating agencies’ reports and…
