Neuberger Berman Climate Review Finds Big Holes in Readiness | Pensions & Investments
- Neuberger Berman began a comprehensive review of its $304 billion portfolio last year, specifically to understand how its investments will be affected by climate change. "The unfortunate overall conclusion is that developed markets are not on track," said Jonathan Bailey, head of ESG investing. With the help of three climate scientists who joined the firm in November, Neuberger Berman plans to push companies for progress — and quickly. If the firm isn't satisfied, Mr. Bailey said, it might reconsider the investments. (Available with free registration)
BNY Mellon Launches ESG Investing Tools as Client Demand Rises | Global Custodian
- BNY Mellon has debuted a range of reporting tools to track investments based on ESG issues and United Nations Global Compact (UNGC) principles. The global custodian said it hopes to capture demand from institutional investors that are exploring how ESG and other types of sustainability data can help them fine-tune their risk management practices and investment decisions.
ESG funds have never been cheaper as Vanguard sets off fee war | InvestmentNews
- The price war has come to socially conscious investing. Sustainable funds — historically more expensive than their peers — have struggled to compete with traditional offerings, managing just $9 billion of the almost $4 trillion in U.S. ETFs. But as the bulk of investors seek funds charging $2 or less and fees fall toward zero, issuers are rebranding ESG strategies as cheap, broad funds. It seems to be working. ESG ETFs have already attracted $1.3 billion in new assets so far this year, more than half what the funds took in during 2018.
BlackRock in Push to Make Sustainable Investment Mainstream | Ethical Corporation
- The world’s largest asset manager, with $6.32 trillion under management, has launched six new sustainable equity ETFs, which target a 30% carbon reduction compared with six parent MSCI indices with no loss of performance. BlackRock has sought to promote sustainable investment through chairman Larry Fink’s annual letter to CEOs, its stewardship processes, and its direct engagement with over 1,000 companies, but "the most important way we can drive this forward is through capital allocation: if you start to see, as a company, that because you have a low ESG score capital is being withdrawn from you and being reallocated to a competitor with an elevated ESG score, what stronger incentive can there be?”
UBS Widens Sustainability Label | Finews
- UBS aims to double assets under management in the “sustainable” segment by the end of next year versus 2017 - in part by bolstering the funds it defines as «sustainable» at its asset management division. Even if the additional criteria in asset management are mainly a bid to bolster returns, UBS is fulfilling the expectations of a key group of clients. Roughly 60 percent of wealthy and ultra-rich clients expect these type of investments to become de rigueur in the next ten years, Angela Wiebeck, the bank's head of UBS in society, said. UBS said that it sees more client demand for the investment niche in its mandates, a lucrative offering for the bank. The wealth arm launched the offering at the beginning of last year.
The Awkward Tension of Running ESG Strategies at Traditional Fund Firms | New Model Adviser
- Optimists might say running a sustainability fund at all is a step in the right direction. Others might call it cynical, or even hypocritical, to be riding both horses. The time horizon on investments is where ESG strategies differ from many funds. Historically fund managers have come under great pressure to perform against quarterly targets. By contrast sustainable funds, by their nature, have to consider and account for their own long-term non-financial impact.
Alt Managers Face Growing Demand for ESG Integration | Investment Executive
- Hedge funds and other alternative asset managers should be integrating socially responsible investing factors into their investment strategies, suggests a new report from Cerulli Associates. The report found there’s a growing demand from investors for alt managers to consider the environmental, social and governance (ESG) factors in their funds, alongside their financial returns.
ESG options scarce in 401(k) plans | Investment News
- The exact numbers are difficult to pinpoint, and some progress is being made, but most calculations estimate that less than 8% of company-sponsored retirement plans include even a single ESG fund option on the investment menu. This is despite data such as a Natixis survey showing that 74% of plan participants want access to ESG funds in their retirement savings plan.
529 Plans Also Miss the Boat When It Comes to ESG | Investment News
- If ever there was a market ripe for ESG investments, it would seem to be the 529 college savings program, which turns 20 this year. only 10 states, plus Washington, D.C., offer even a single ESG fund on their 529 plan investment menus. In those plans, just 2% of assets have been allocated to ESG funds.