French Pension Fund Dodges U.S. Treasury Market

ESG Concerns Shun the World’s Most Liquid Market

A French pension fund and several other ESG funds are shunning the U.S. Treasury market. The funds found fault this week with the United States government and listed reasons for divestment.

According to Bloomberg, ESG funds at Erste Asset Management, Joh. Berenberg Gossler, and Union Investment are leading the trend. 

French pension fund lists reasons for Uncle Sam divesting

These groups listed concerns about U.S. policy on nuclear weapons, climate change, capital punishment, and more. These factors have fueled an exodus from the most liquid market on the planet.

“ESG-dedicated investors would usually avoid or question investments in U.S. Treasuries,” said Rupini Deepa Rajagopalan at Berenberg. That fund oversees 36.7 billion euros.

This asset manager cited U.S. stances on nuclear weapons and climate change as reasons to avoid the U.S. bond markets. 

The report also listed the $36 billion French Public Service Additional Pension Scheme as another firm bailing on the U.S. A spokesperson listed capital punishment as a reason for the divestment.

Will ESG funds struggle? 

As we noted Tuesday morning, the sudden rush of ESG standards and funds feels familiar and concerning. Recently, British analyst Daniel Litvin expressed our concerns perfectly.

As financial institutions rush to profit from the boom in sustainable investing, they risk overselling its ethical and commercial benefits. It would be a shame if a movement with genuine potential to change the world were stopped in its tracks by old-fashioned misselling.”

[Related: Climate Change Protests in London: Activists Glue Themselves to BlackRock’s Doors]

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.

Alt Insights

May 21, 2020

Venture Capital: British Startup Offers Travel Jaunts on the Never-Never

Venture Capital: British Startup Offers Travel Jaunts on the Never-Never

Latest Alternative Investment News
Liquid Alternatives: RIP 60:40. Liquid Alts Solve the New Equation
May 22, 2020     Latest News, Liquid Alternatives, News

Volatile equity markets and declining fixed income yields have turned the traditional 60:40 portfolio allocation between stocks and bonds on its head. According to one study, an investor would today…
Digital Assets: The Texas Grid Pays Thiel-backed Layer1 to not Mine Cryptos in August
May 22, 2020     Digital Assets, News

Layer1, the bitcoin miner backed by the likes of top-flight VC Peter Thiel and early-stage investor Shasta Ventures, based its operations in west Texas to take advantage of cheap power….
Venture Capital: Beijing-based start-up Missfresh May Soon Nab $500M
May 22, 2020     News, Venture Capital

The Covid-19 has boosted the fortunes of online grocery delivery start-up Missfresh. Locked-in families have stepped up their demand for groceries and fresh foods to be delivered at home amidst…
Fintech: Visa Enters an Investment and Strategic Partnership with GoodData
May 22, 2020     FinTech, News

Global analytics firm GoodData announced it had received an investment from Visa Ventures, the corporate venture investment division of payments giant Visa (NYSE: V). GoodData also said the two companies…

Scroll to Top