Hedge Funds

ESG and Sustainability

The rise of ESG factors in investment decision making will have a dramatic impact on returns and opportunities in the 21st century. A recent survey by LGT Capital Partners and Mercer showed that 57% of respondents believe that incorporating ESG standards into investment decisions will raise returns. Just 9% argued they reduce returns on investment.

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Alternative Investments/Real Estate: UOB Launches APAC-Focused, Green REIT ETF

November 30, 2021

Singapore’s United Overseas Bank ( UOB ) Asset Management has launched the UOB APAC Green REIT ETF (GRE SP), which has been listed on Singapore Exchange and provides ESG-tilted exposure to high-yielding real estate investment trusts (REITs) listed in Asia Pacific and Oceania. The fund is said to be the first of its kind in the world that brings investors access to sustainable investments in real estate in the region.

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More Stories on ESG and Sustainability

ESG: Graham Clapp Says ESG-Focus is Creating a New Bubble

February 27, 2020

RWC Partners fund manager Graham Clapp warned that sustainable investing trends are poised to form a possible bubble in the markets. He compared it to the tech boom of the 1990s.

“You can liken it to the tech bubble where people wanted to have exposure to the new economy stocks, so a lot of money poured into certain kind of business models and valuations were pumped up and incredibly stretched. When such large influxes occur – as we’re currently seeing with ESG – then supply and demand mean the price is going to change,’ Clapp said.

Venture Capital: VCs, Wake Up And Smell The ClimateTech Coffee

February 27, 2020

Andrew Chung, of 1955 Capital, says climate change is the perfect storm.
A huge market is shaping up around ClimateTech, a category of solutions that enable governments, companies, and individuals to combat climate change. There is a sudden shift in investors’ preference for sustainable and climate-friendly companies and products. The once uncared for and given-up-for-dead moniker, “CleanTech,” could become a $4.3 trillion market by 2030 in its new avatar as “ClimateTech.”

ESG: By No Means A Passing Fad; It’s a Mega-Trend

February 18, 2020

Investors are cracking the whip to ensure that their demands for ESG (environment-social-governance) options are met. Money is flowing to ESG-focused ETFs and mutual funds, while hedge funds that are slow on the uptake are being cold-shouldered. BlackRock CEO last month told investee company CEOs that “we are on the edge of a fundamental reshaping of finance,” with reference to climate change and climate risk. He further warned that BlackRock will be disposed to vote against non-compliant management and board directors. Clearly, the tide has turned decisively in favor of ESG investing.

Liquid Alternatives: Lyxor Launches High Yield Bond ETFs With ESG Exposure

February 14, 2020

Lyxor launches three new ETFs for investors looking to invest in high yield bonds with a sustainability angle.
Lyxor’s new ETFs have a total expense ratio (TER) of 0.25%, the lowest among ETFs tracking High Yield indices with ESG filters.

BlackRock Makes Big ESG Push on ETFs

February 14, 2020

BlackRock ESG ETFs have emerged as a popular draw among institutional investors. This week, the alternative investment manager announced a $600 million investment from Finland’s largest pension insurance firm. Ilmarinen invested the capital in the iShares ESG MSCI EM Leaders ETF (NASDAQ: LDEM). This was the firms’ second investment in iShares ESG strategies.

Liquid Alternatives: Credit Suisse Back In The ETF Game; Launches Three Funds including ESG

February 13, 2020

Credit Suisse announced the addition of three new, “ultra-efficient” ETFs to its range of funds. These funds will supplement the existing Credit Suisse index Funds.
Credit Suisse Asset Management had an AUM of CHF 132 billion as of end-December 2019. It has a core business of index funds and has been replicating indices for a wide array of asset classes, regions and currencies since 1994. Currently, it has a range of more than 90 index funds on offer. It has extended this capability to ESG sustainability indices.
Two of the new funds have a focus on environmental, social and governance (ESG) aspects.

Hedge Funds: Elliott’s Offensive on Evergy Unnerves Chamber of Commerce

February 10, 2020

Curtis Sneden, president of the Greater Topeka Chamber of Commerce is concerned about repercussions from activist hedge fund Elliott Management’s broadside against regional utility Evergy, Inc. (NYSE: EVRG). Feared activist hedge fund Elliott wrote to Evergy on January 21 requesting changes that would create value for shareholders. New York-based Elliott is owned by billionaire Paul Singer.

It owned an “economic interest” in Evergy worth $760 million as of the date of the letter.

Liquid Alternatives: Sustainable Investing Meets Munis in New Van Eck ETF

February 10, 2020

Van Eck will soon launch the VanEck Vectors Sustainable Muni ETF.
The fund manager will meet investors’ growing preference for sustainable investing by offering it inside of a fixed income vehicle. It filed with the SEC for its plans to launch the VanEck Vectors Sustainable Muni ETF

ESG

ESG: Institutional Investors Press Hedge Funds on ESG Investing

February 6, 2020

Institutional investors are pushing hedge funds to adopt ESG in their investment decisions. These investors see ESG investing as a way to serve their own long-term interests and wider society. This is the key takeaway of a new report: Sustainable Investing: Fast-Forwarding its Evolution.

M&A Deal News

ESG: Trillium CIO: We’re Selling to Australia’s Perpetual

January 31, 2020

Trillium Asset Management CIO John Quealy says that his firm is selling itself to Perpetual.  Trillium is a Boston-based ESG equity and fixed-income manager that launched in 1982. Perpetual has been around since 1886 and is one of the oldest financial firms in Australia. 

Venture Capital: Melinda Gates’ Incubation Firm Pivotal To Invest $50M for Women’s Equality in Tech

January 30, 2020

Over the next five years, Melinda Gates’ Pivotal Ventures, an investment and incubation company, will invest $50 million to create more opportunities in the tech sector for women.
Last year, Gates published “The Moment of Lift: How Empowering Women Changes the World.”
Last year, Gates had pledged an amount of $1 billion towards empowering women over the coming ten years. The current investment of $50 million is a part of that pledge and will cover Chicago and two unnamed cities.

ESG: Is Biodiversity is the New Climate Change?

January 29, 2020

Biodiversity is now in the same league as climate change from an ESG perspective. AXA Investment Managers, BNP Paribas Asset Management, and Sycomore Asset Management want investors to focus on biodiversity preservation.

ESG: State Street Will Turn Screws on ESG Laggards

January 28, 2020

State Street Global Advisors will vote against companies that lag behind on ESG standards. The company stands as one of the largest shareholders in public companies due to its stance as a global index fund provider. The firm will lean on its “responsibility factor” a system that measures the performance of companies on ESG metrics.

Act Analytics Launches New ESG Portfolio Analytics Platform

January 27, 2020

Act Analytics announced the launch of a new Environmental, Social and Governance (ESG) portfolio analytics platform. The new platform allows RIAs to compare, contrast, and construct customized ESG portfolios. The new Act Analytics technology combines analytics and more than 200 ESG factors. It allows RIAs to “x-ray” securities, funds and portfolios to assess for ESG levels. They can also construct custom, values-based portfolios for clients. 

ESG: Mining Becomes More Responsible, But Needs To Do A Lot More: EgonZehnder

January 24, 2020

Miners have accepted that Environmental-Social-Governance (ESG) criteria will measure their commitment to sustainability and the impact of their operations on society.
Going a step further, mining companies have also come to realize that ESG compliance leads to the creation of shareholder value and attendant social benefits such as better working conditions. Further, they recognize that investors, employees and host governments will welcome those miners that have a record of credible ESG performance.
That ESG is causing a sea change in miners’ approach to societal obligations is apparent. But, says EgonZehnder, they should be doing more.

ESG: MSCI Chief Fernandez Warns ESG is a “Permanent Change in the Way Capitalism Works”

January 23, 2020

“We’re sounding the alarm bells, “ said MSCI chairman and CEO Henry Fernandez on CNBC’s Squawk on the Street. If you are an investment institution and you’re not embracing this and taking it into account, it’s going to be at your own peril,” said Fernandez. He warned ESG is a “Permanent Change in the Way Capitalism Works.”

ESG: ESG Investing at Inflection Point in 2020, says Nasdaq Head

January 23, 2020

It’s the 50th annual World Economic Forum at Davos. Nasdaq President and CEO Adena Friedman wrote in LinkedIn on Monday: “As we look ahead to a new year and a new decade, it’s far from clear that our world can be described right now as either cohesive or sustainable.” However, Friedman is enthused by the progress on ESG during 2019 and the prospects for it in 2020. Therefore, “2020 is increasingly looking like it may be the tipping point year for ESG investing,” said Friedman.

ESG: Best Buy’s CEO in the Dock for Alleged ‘At-Work’ Liaison

January 20, 2020

Current Best Buy CEO Corie Barry allegedly had a romantic relationship with a male colleague before taking charge as CEO in June 2019. Best Buy’s board is investigating the charge, made through an anonymous letter dated January 7.

Emission-Free Friday: Here are the Latest Funds to Push for Carbon Neutral

January 17, 2020

Carbon emissions dominated the headlines this week.

The European Commission has announced an ambitious plan to shift toward a green economy and make the EU carbon-neutral in the year ahead. The plan will cost at least one trillion euros over the next decade, require 25% of the EU budget, and involve a mix of private and public funds. EU chief Ursula von der Leyen called the project unprecedented.

ESG: Cerulli Report Says 2020 To Be “Pivotal” For Retail ESG Investing

January 17, 2020

New regulations, products, and money will make 2020 a banner year for ESG in Europe
Sustainable and responsible investing around the themes of Environment-Social-Governance (ESG) will come into its own in 2020 in Europe, says the latest monthly report by Cerulli. And demand impetus may come from retail investors, the report goes on to say.

Key Takeaways from the J.P. Morgan Asset Management “Global Alternatives Outlook”

January 17, 2020

The Global Alternatives Outlook was released by JPMorgan Asset Management this week. The report provides a 12-18-month outlook across key alternative asset classes. The report also the views of the CEOs, CIOs, and strategists from the firm’s 15 distinct alternatives investment engines. We take a look at the key takeaways from the report.

FTSE Russell Launches European Climate Risk Index

January 16, 2020

FTSE Russell has launched a new fixed income offering in Europe that weighs factors in each country’s efforts to mitigate climate change. The FTSE Climate Risk-Adjusted European Monetary Union Government Bond index is the first of its kind to measure these factors, according to the company’s press release today.

ESG: ValueAct Salutes the BlackRock “Climate Change of Heart”

January 16, 2020

ValueAct founder Jeffrey Ubben expressed his excitement this week that BlackRock chief Larry Fink had sounded an alarm around climate change. The founder of the $17 billion hedge fund has been one of the biggest supporters of ESG factors in corporate governance.

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix

January 16, 2020

Larry Fink’s emotionally charged plug for ESG ticks all the investment boxes for Tesla.
According to Cramer, electric car maker Tesla could be a beneficiary of BlackRock’s new-found love for everything ESG.