As the interest on ESG investing grows among all sides of the asset management industry, it becomes increasingly relevant to assess how this rise will impact equity and commodity investments.
Corrado Gaudenzi, head of Long Term Sustainable Strategies at Italy's Eurizon Capital SGR, says that his team has set up an internal compliance checks to ensure an equity fund meets the desired responsible investment criteria.
Gaudenzi's team follows an investment approach based on a disciplined flexible equity allocation and on the selection of sustainable high dividend stocks,which are the key elements of the Eurizon Fund Azioni Strategia Flessibile managed by him.
We believe that investment strategies focused on the Global Goals will improve their risk/return profile and therefore will attract a higher investor interest."
This fund aims to achieve a return aligned with the historical long-term performance of Western countries' equity indices on a time horizon of at least seven years, but cutting the tails of the standard equity returns distribution.
Gaudenzi says he is already seeing an increasing interest from investors on sustainable and responsible investment strategies. "We already see a shift in investor preferences for products that explicitly deal with climate change risk management."
He adds: "We believe that investment strategies focused on the Global Goals will improve their risk/return profile and therefore will attract a higher investor interest."