Mon, Aug 15, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

One-third of alternatives investors refrain from investing in a fund with inadequate ESG policy, says survey

Thursday, March 19, 2020

Laxman Pai, Opalesque Asia:

More than one-third of global alternatives investors have refrained from investing in a fund because it had an inadequate ESG policy; 26% said this occurs "sometimes" and 9% said it happens "frequently."

This is according to a Preqin global study, which surveyed 400 alternatives investors around the world for their views on the current state of ESG.

The survey pointed out that while this has never been the case for 23% of respondents, a surprising 42% told Preqin they do not consider ESG principles during fund evaluation at all - a clear indication that there is still far to go before ESG will be considered mainstream.

Despite this, roughly four in five respondents believe ESG-focused funds perform at least as well as those that do not focus on ESG, with 56% saying ESG-focused funds performed "about the same" and 23% claiming they tend to perform better. The remaining 21% think ESG-focused funds tend to perform worse.

Anecdotally, ESG's continued integration into asset allocation will, in the words of one investor surveyed, "predominately depend on its ability to produce consistent returns and keep pace with traditional alternative investment."

Looking forward, 61% of survey respondents said ESG will become more integral to the industry in the next 36 months, with 10% believing it is already an integral part of the industry.

Another 22% said it would stay as integral as it is today, while just 7% said ESG will become le......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: ESG exuberance is at all-time highs. But will investors buy?[more]

    As investors increase their focus on mission-based investing, they continue to grapple with ESG and what it means to them. By David Shalom, Director of Capital Introductions at Pershing Innovation. New investment solutions. That's how managers deliver value and attract new inve

  2. Alts managers sitting on over $2.5tn+ of dry powder[more]

    Laxman Pai, Opalesque Asia: In the current rising interest rate environment, investment activity in the private markets has continued to grow, revealed a study. "With alts managers sitting on over $2.5T+ of dry powder and continuing to enjoy premium valuations and interest rates on a prec

  3. Opalesque Exclusive: Hong Kong manager expects additional tailwind in Asian markets[more]

    B. G., Opalesque Geneva: The Asia equity markets have not been at their best so far this year, with the MSCI Asia index down almost 13% YTD, but many managers remain buoyant about the region, as in

  4. Opalesque Exclusive: Emerging markets persist despite headwinds[more]

    Bailey McCann, Opalesque New York: Emerging markets have been under significant pressure since the start of the year, but there are some nascent trends that suggest that things could be getting better. Emerging markets firm Gramercy Fund Management recently released its third quarter outlook and

  5. Opalesque Exclusive: Castle Hall's DiligenceExchange free Transparency Reports cover 100 managers with $10tn of assets[more]

    Matthias Knab, Opalesque for New Managers: Managers and investors can get free access to DiligenceExchange here: Castle Hall, the Du