Strategies
Our study indicates investors selling off what they perceived to be higher-risk investments and seeking to purchase perceived Covid winners (e.g. technology and distribution related assets). Accordingly, it is not surprising to see evidence of a heavier weighting towards core strategies in 2020.
Our survey reveals that ESG principles (environmental, social and governance) are becoming increasingly important. A result of increased demand for more sustainable investment approaches, investment managers are now “following the money” and making ESG products available to investors.
Fund managers will continue to be subjected to increasing regulation, for example, non-financial reporting requirements which include disclosing their ESG impact. This, when coupled with increasing investor demand, is likely to affect non-green companies’ ability to raise capital. We expect ESG will become a core investment theme going forward.
