In a succinct article published on FTAdviser on November 10, 2017 Gary Waite refutes the “premise that restricting the investment universe of active managers of ethical mandates causes them to underperform their unconstrained counterparts. The evidence suggests this is not the case.”
The article cites a wealth of evidence about:
- growth of ethical assets under management (AUM)
- diversity of ethical investing approaches/strategies
- climate change, demographics and regulation as drivers of change
- performance of ethical investments vis-à-vis mainstream investments; and
- use of ESG scores to mitigate risk.
Registered users may read the article on the FTAdviser internet site.