Fund Industry Lags Behind in Sustainability

This is at least shown by a study in which no provider achieved the best rating. There is therefore still a lot of catching up to do when it comes to ESG, especially since the topic of sustainability has grown considerably in recent years. This is noticeable in the products in the portfolios of many fund houses. The ESG boom and the promise that investors’ money is invested in a particularly environmentally and socially friendly manner is now almost unimaginable without it.  However, the analysis of the non-governmental organisation “Share Action” achieved a rather sobering result. According to the “Neue Zürcher Zeitung” (NZZ), 75 of the world’s largest asset managers on the subject of sustainable investments were subjected to this test, none of them achieving the highest rating of “AAA”. The rating ”AAA” assigns Share Action to fund companies that represent all criteria of sustainability. Only five companies, including the Dutch fund company Robeco, achieved the third-highest “A” rating. Robeco took first place on the scale.

Asset managers from the USA performed remarkably poorly. Particularly large and well-known US providers such as Blackrock (47th), State Street (39th), Franklin Templeton (56th), Vanguard (69th), JP Morgan AM (71st) and Fidelity Investments (73rd) surprisingly received the most unsatisfactory ratings. These are divided into “D” or “E”. In contrast, the first Swiss and German providers performed more positively. The companies J. Safra Sarasin and Allianz Global Investors were still ranked 17th and 18th.

Source: click here.