Schroders Investment Management

This week’s overview of transfers, appointments, promotions and other career news in the fund and asset management community in and outside Luxembourg includes updates from Crédit Mutuel Asset Management, the European Securities and Markets Authority (Esma), M&G, Schroders, Carmignac and Vistra.

Nearly two-thirds of investors in Europe are concerned about greenwashing, even though EU regulation has been in place for more than a year, a new survey released on Thursday showed. More than half of all European investors remain very concerned about the lack of transparency and reported data.

Record levels of funds invested into private asset strategies has led to the phenomenon of “too much dry powder” in which new investments fuel higher entry valuations for the slower-growing number of underlying investment opportunities. Nils Rode, Schroders Capital’s Chief Investment Officer, explained that avoiding this involves locating successful investments, those that benefit from a “complexity premium”, as private assets move into a new phase.

Since the outbreak of the Covid crisis, institutional investors have been increasingly looking towards sustainable funds. However, risk management is proving a major challenge, according to a study by asset manager Schroders.

“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.”