sustainability

At launch in 2017, the Responsible Horizon Euro Corporate Bond Fund was one of the first bond funds with a focus on sustainability. The fund has since achieved solid outperformance, but this is not due to the sustainability filters the fund applies, according to fund manager Lutz Engberding of Insight Investment, a boutique of BNY Mellon Investment Management.

“Avoid the extremes of the market: deep value stocks and expensive growth stocks. It is in the latter segment that the greatest danger lies, given the strong dominance of retail investors. Cathie Wood with its ARK ETFs is a perfect example of this. Good risk management is important in all areas of fund management. And, of course, sustainability criteria are crucial.”

Shares of companies that are good for the world often manage to strengthen their competitive position at the expense of unsustainable companies. Their growth potential is often still underestimated by the market, according to Hendrik-Jan Boer, senior portfolio manager of Neuberger Berman’s Global Sustainable Equity strategy.

European sustainable funds attracted inflows of €52.6 billion in the third quarter of 2020, bringing total assets in sustainable funds to €882 billion according to figures from Morningstar.

Net inflows were slightly down from the €55.5 billion in the second quarter, but represented a bigger share (40%) of overall European fund flows. The strong inflows were driven by continued investor interest in environmental, social, and governance issues, intensified in the wake of the coronavirus pandemic, as well as the expansion of the sustainable fund universe.

There are less than five months to the first sustainable finance disclosure regulation (SFDR) deadline, and the next is just eight months away. Stéphane Badey, a partner with Arendt & Medernach speaking at the recent LuxFlag Sustainable Investment Week on 14 October, highlighted some of the key concepts.

Sustainability will be the starting point for Quintet’s discretionary mandates, says James Purcell (photo), the new head of sustainable management at Quintet Group, in an interview with Investment Officer.

In the fastest and deepest correction we’ve ever seen, ESG strategies have held up relatively well. A webinar organised between Natixis Investment Managers and its affiliate asset managers Thematics AM and Mirova, the reasons behind this were discussed.

Companies with above average sustainability profile held up better during the first month of the corona crisis. The crisis thus confirms the importance of ESG integration not only from a climatic and social perspective, but also from a financial perspective.

The proposals by the Technical Expert Group (TEG) for sustainable benchmarks and ESG disclosure will not lead to an increase in investments in the climate transition, says index provider Scientific Beta in a vicious 60-page rebuke of the TEG’s final report, which was published in autumn last year.

Luxembourg wants to be the leading global centre in sustainable finance by 2025. It also wants to keep increasing the number of foreign banks and asset managers active in the country and strengthen its role as a wealth management hub by attracting more family offices.