Opalesque Industry Update: New research from Boston-based global analytics firm Cerulli Associates shows increased interest in environmental, social, and governance investing (ESG), and not just among non-profit organizations.|
"A trend we have seen over the past 12 months is increased requests for ESG investments in institutional product lineups," states Michele Giuditta, associate director at Cerulli. "The other two most-requested products were emerging market and long-duration fixed-income products."
In Cerulli's latest report, U.S. Institutional Markets 2012, Cerulli provides a comprehensive review of the industry, summarizing trends and revealing opportunities and challenges the industry faces. The latest research in this report also analyzes service and product strategies, as well as the implementation of effective sales strategies.
"We have found that many large public pension funds are adopting processes for integration of ESG investments into their portfolio," explains Giuditta. "As institutional markets become increasingly competitive, asset managers are finding ways to diversify their offerings and socially responsible investing is one form of diversification we are seeing."
Cerulli notes that institutional investors are continuing to move away from traditional asset classes in search of higher returns and greater diversification in response to uncertainty in the global economy and capital markets.