Hedge funds waking up to ESG benefits

After years of casual indifference from much of the sector, more managers are seeing the business and investment benefits of abiding by responsible investing standards

It is fair to say hedge funds have been slower than other asset managers to take a leading role when it comes promoting and abiding by environmental, social and governance (ESG) standards.

As Aima noted in a report last year: “While other asset classes [such as private equity]… have become increasingly prominent, hedge funds remain a minority voice in spite of important contributions.”

Yet things are beginning to change.

A 2016 survey by $16bn Swiss investor Unigestion found half of those hedge fund managers surveyed are interested in ESG standards, up from around 40% last year, while 30% incorporate ESG standards into their decision-making already.

These figures, along with an increased focus on ESG issues from the likes of Aima and the hedge fund arm of the United Nations Principles for Responsible Investment Initiative (UNPRI), highlight how a growing number of managers are waking up to the potential to attract more investors through the promotion of ESG values.

Read more here: https://hfm.global/hfmweek/analysis/hedge-funds-waking-up-to-esg-benefits/