Most asset managers believe that investors' heightened focus on environmental, social and governance (ESG) strategies is a long-term "secular" trend, according to a new report.
Cerulli Associates discloses this finding in its August 2014 edition of "The Cerulli Edge: U.S. Monthly Product Trends." The issue explores portfolio solutions and benchmark-neutral product developments, examining how assets managers are responding to retail channel needs.
The research indicates that nearly 9 in 10 (87 percent) of asset managers see investors' increased attention to ESG strategies as a secular trend. Yet most of the asset managers surveyed also say their ability to offer ESG capabilities is only "somewhat important."
Asset managers surveyed by Cerulli have observed a moderate (65 percent) or significant (13 percent) increase in demand among clients and prospects for the United Nations-supported Principles for Responsible Investment (PRI) Initiative: an international network of investors who seek to implement six principles for responsible investing. In implementing the principles, PRI signatories aim to contribute to the development of a sustainable global financial system.
