Refinitiv Lipper’s analysis of environmental, social, and governance (ESG) investments in the UK market for 2021.   It’s been a year of contrasts—probably the most restrained thing one can say of 2021. While flows into ESG equity funds dominated, taking £33.5bn over the year—with £22.7bn into the Equity Global classification alone—there are signs that bonds are starting to accelerate. Flows more than doubled the year’s takings in the fourth quarter, from £3.2bn between January and September to £6.8bn by year end. This contrasts with performance: the ‘dirty’ stocks of oil and gas companies drove returns for the year, as alternative

With the announcement that BlackRock will make sustainability its new standard for investing, the debate about ESG integration has reached a new level. Even as there has been a lot of talk about the integration of ESG criteria before, the self-declaration of the largest asset manager in the world to integrate ESG in all its active portfolios and advisory strategy by the end of 2020 might be a game changer, as this has a lighthouse effect and may force other large asset managers to do the same. In addition to its commitment on the integration of ESG criteria, BlackRock will

Climate change is one of the major issues of our time, and the (hopeful) transition to a more climate-friendly economy presents both risks and opportunities for investors. Thus, many savvy investors are considering a company’s carbon footprint in their bottom-up company analysis. However, more than 80% of returns and risk over a longer (10+ year) time horizon are attributable to the strategic asset allocation, ie. how much to be invested broadly in certain countries and sectors, rather than in which specific companies. Therefore, long-term investors are considering climate change in their overall economic assumptions that drive their asset allocation decisions.

Michael Barclay, Senior Portfolio Manager at Columbia Threadneedle Investments discusses the importance of corporate governance on investing, and particularly its impact on the growth of ESG investing. Lipper Fund Award winners have excelled in providing consistently strong risk-adjusted performance relative to their peers. The merit of the winners is based on entirely objective, quantitative criteria. This coupled with the unmatched depth of fund data, results in a unique level of prestige and ensures the award has lasting value. For a full list of USA Lipper Fund Award 2019 winners, click here. For new insights on artificial intelligence (AI), digitalization, big data,

In this podcast, Dom Giuliano, Deputy CIO of Australian-based Magellan Asset Management, outlines the philosophy and positioning of Magellan’s Global Low Carbon Strategies. He explains how this portfolio fits in within the framework of traditional ESG and ethical funds, and why low-carbon strategies are becoming increasingly popular with institutional investors. He outlines the unique risks contained in this strategy and examines where stock opportunities present themselves. He also explains how passive solutions in this area may potentially lead to the inclusion of stocks incompatible with a genuine low-carbon strategy. Dom also provides a broad outlook for the global equities markets in 2018

In September 2015, 193 of the world’s governments adopted the UN’s sustainable development goals (SDGs) as a blueprint for changing the face of the planet by 2030. They provide a universal framework for sustainable development through 17 different goals, each targeting a different aspect of a future that ensures prosperity and environmental protection for future generations. For investors, the SDGs represent both the power that the financial world can have in supporting a transition to the UN’s vision of the future and the ability to find sustainable investment opportunities. Many of the goals – for example, climate change, water quality

At the recent Thomson Reuters Lipper European Alpha Expert Forum, we asked a panel of ESG experts how sustainable portfolios can help improve investor outcomes. Trevor Allen, Product Manager at BNP Paribas Risk and Performance Division, Chris Welsford, IFA and Managing director of Ayres Punchard Investment Management Limited and Andrew Parry, Head of Sustainable Investing at Hermes Investment Management, examine how the rise of incorporating ESG data into investment decisions can have a big impact on the environment and society as well as providing growth opportunities. Topics included: Impact Investing defined Ethical vs. impact investing Sustainable investment and growth opportunities

Does bad corporate behavior lead to poor financial outcomes? Corporate governance failures have been easy to spot in recent years, with business headlines dominated by corporates that have failed to ensure they are run according to robust rules, guidelines and strategies. With companies held under much more scrutiny by their various stakeholders – not just limited to owners and shareholders, but also extending to their employees, the general public and beyond – there is more pressure on boards and management to have a watertight system of practices to achieve their objectives. Investors have been leant increasing powers to influence corporate

Environmental, social and governance (ESG) data is increasingly influencing how investors look at investee companies. As Detlef Glow, Lipper’s head of EMEA research, wrote in a recent blog, though the majority of investors do not invest in sustainable products, there is an increased interest in the practice as many begin to understand the importance of nonfinancial risks to a company’s long-term health. Some institutions are leading the way here, too, like Hermes, the UK-based fund manager, which actively stewards its managed and advised assets to ensure it fulfils its fiduciary duty. The institution’s head of sustainable investing, Andrew Parry, is