NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Tuesday, June 20, 2017

More precise language about ESG investing and a more thorough conversation about the purpose it plays in portfolios may be the key to bridging the “gulf” between how professional and individual investors view its role and impact, according to Natixis Global Asset Management.

In a report based on a set of investor surveys it carried out last year, the asset manager said it found a “distinct split” in the views of professional and individual investors that challenges conventional thinking about environmental, social, and governance (ESG) investing.

Individuals believe the environmental, social, and ethical records of the companies they invest in are important, said Natixis, while professionals at institutions and within “the investment community” were more skeptical about the efficacy of these strategies, for example having concerns about performance measurement.