Hedge funds nudged to environmental and social investing
February 10, 2020 9:02 am |
By Michael Klein
As climate change and inequality are dominating the media and public agenda, a growing number of institutional investors are basing their investment allocations on environmental, social and governance (ESG) criteria and are forcing alternative funds to take these factors into account in their portfolios.
A survey of 135 institutional investors, hedge fund managers and long-only managers with total assets of US$6.25 trillion in 13 countries showed that investors increasingly expect their asset managers to generate high returns and consider the environmental and social risks associated with their investments.