ESG capabilities being built out ahead of expected demand increase – Cerulli

Research from Cerulli Associates, suggests that asset managers in the US are expanding their capabilities in environmental, social and governance areas ahead of expected growth in demand from investors to access such capabilities.

The findings are contained in the latest issue of The Cerulli Edge – U.S. Edition, which suggests that US investors are moving away from simple exclusion of ‘sin’ stocks to strategies that look to applying ESG criteria through “integration, best-in-class positive screening, or impact investing, among other methods,” according to Brendan Powers, senior analyst.

“As ESG strategies are gaining traction in the institutional space, consultants are recognising this burgeoning demand and ramping up the degree to which they identify managers that incorporate ESG into their investment process.”

However, while current demand has been focused on institutional investors, Cerulli’s research suggests that investment advisers in the US expect retail demand to grow as more ‘next generation’ investors “seek to align their portfolios with their personal values.”

Fuller details around the research are available from:  The Cerulli Edge – U.S. Edition, December 2017 issue.

Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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