Lenneke Arts

“Data from external parties are insufficiently transparent to be able to rely fully on in ESG investments. Moreover, the scores of these parties are often based on information and performance from the past. Particularly in the case of sustainability, a tool must help investors look ahead.”

As a result of the Covid pandemic, trends and themes that previously seemed to be the preserve of millennials have now found their way into older generations. Even if we are gradually getting back to normal life, it is a movement that will not be easily reversed.

“A better distribution within the traditional investment portfolio is 78 percent shares and 22 percent bonds,” DWS’s head of multi-asset Bjorn Jesch said. “Possibly with the addition of alternatives, to reduce the portfolio risk.”
 

At ABN Amro, clients have shifted to a higher-risk investment profile. Whereas previously the most popular profile invested mainly in bonds, this has now changed to a profile investing 55 per cent in shares, explained Richard de Groot of the bank an interview with Fondsnieuws as part of its series on asset allocation amid the current low interest rate climate. 

Although it was never a conscious decision, the fact that the DWS real estate fund Europe II is managed by three female fund managers has become “a thing,” notes Jessica Hardman of DWS. “There is still a lot to be done if the real estate and investment industry is to be open to the fact that you can pursue a career path in the industry regardless of your colour, gender or origin.“

Small caps have shown stellar performance this year, helped by an improved economic outlook. Valuations have risen, so are there still opportunities for investors? We asked Jan Willem Berghuis, head of small caps at Kempen Capital Management.

In recent weeks, the €1.2 billion Kempen Global Smallcap fund has taken profits on the biggest risers, adjusted weightings and spent time on new investment ideas, says Berghuis.

Whereas European equity funds suffered substantial outflows during the coronavirus crisis, their ESG counterparts held up much better. Moreover, the assets under management are now higher than at the start of the year. This is partly due to the arrival of investors who had never thought of ESG investing before, says Michael Lewis of asset manager DWS.