NorthPeak Advisory’s Post

Regulators are rightly applying scrutiny to #sustainable / #responsible / #esg investment names or labels. Some asset managers may have said more than they are actually doing in the past. In the alternatives space I have not seen many managers overselling themselves. With the FCA's introduction of the #SDR labels it will be interesting to see if leading UK investors look for their managers to have a specific label and so labelling becomes necessary for funds that are not currently in scope. #responsibleinvestment #esginvesting #sustainableinvesting

From our latest newsletter: Anthia Serdari of 7Q Asset Management Ltd explains that AIFMD requires Fund Managers to integrate and consider “sustainability risks” in the management of Alternative Investment Funds (AIFs) and SFDR promotes transparency (disclosures) on how Fund Managers consider “sustainability risks” in their decision-making process. https://lnkd.in/eNFSd6Q3

Excellent discussion between Christophe Lemarié Chief Operating Officer for Client Experience and Strategy and member of TOBAM's Executive Committee, with Andrew Putwain, exploring the expected and unintended consequences of regulatory and market strengthening initiatives. "Another potential risk for the asset management industry that we foresee, ... is the fragmentation of the market due to different ESG regulatory frameworks defined and implemented by the different local regulators" Subscribe for free at www.FundOperator.com to receive alerts of first-hand perspectives from leading practitioners in the fund and wider investment management sector. #fundoperator #investmentmanagement #regulatory #marketstructure #ESG #operationalexcellence #newideas

A greater focus on engagement by asset owners and regulators has “unintentionally fuelled a stewardship stampede” by asset managers, according to a report by impact-focused firm WHEB, writes Krystle Higgins. #impactinvesting #stewardship #esg https://lnkd.in/esF5hmqM

Most asset owners believe that ESG resourcing should not affect a strategy’s overall price, but only half of asset managers agree. 9/10 asset managers say their ESG-related spending has “increased materially” in the past three years.

Interesting report from Funds Europe analysing the carbon footprint and WACI of EU asset managers - Fundsmith LLP topping the table, if that's the right way round, with a carbon footprint under 5 tonnes of CO2 per million euros invested, while some asset managers running well in excess of 100 tonnes. BlackRock ranked as having the highest number of sustainability professionals in the organisation - interesting reading, are carbon footprint tables a useful metric?

The Sustainable Markets Initiative (SMI) announces the publication of a pivotal report to help asset owners integrate climate risks and opportunities into their investment decisions. The report is developed by Impax Asset Management and State Street as members of the SMI’s Asset Manager and Asset Owner Task Force. #ClimateRisk  

Funds Europe Nik Pratt's article, "An Act of Futility in the Funds Industry," offers an intriguing look into the funds industry's struggle with collaboration and the development of shared utilities. This challenge is starkly illustrated by the exit of giants like JP Morgan Asset Management and BlackRock from the Climate Action 100+ initiative, pointing to a broader trend of preferring individual solutions over collective action. Simon stands out with his push for an "open asset management" market. By advocating for standardised, transparent, and accessible data management, he aims to revolutionise asset management in a manner akin to open banking. His efforts, especially the partnership with The Investment Association for a new product data platform, signal a move towards greater efficiency and collaboration in the industry. For those interested in the intersections of finance, technology, and sustainability, this article provide compelling insights into the future of asset management. Explore the full story and the potential for industry transformation here: https://lnkd.in/e2ysfnef

🇱🇺 Candriam just launched a new thematic fund investing in companies developing solutions to preserve water under article 9 of the #SFDR. "The launch of this Fund provides sustainably conscious investors with an opportunity to be part of the solution to an intensifying global challenge. As the water crisis escalates, the market of solutions working to mitigate these challenges is growing in tandem, the global water market is expected to exceed $1100 billion by 2030. Investors also benefit from access to a growing market opportunity backed by our extensive experience in sustainable and thematic investing.” #investing #assetmanagement #thematicinvesting #sustainableinvesting

How can fund operators help clients integrate ESG strategies? Claudia Roering, CESGA, Sustainable Investing Coordinator, Quoniam Asset Management, and Miriam Benarey, Associate Director, Sustainability and Stewardship, Impax Asset Management, discuss what customisation can mean for helping clients better integrate ESG. “We have done customisation over the last two years. For instance, we have created an investment signal using forward-looking climate measures, where we have taken various data points on climate targets and blended them into our alpha signal,” Röring said. The built on the theme of customisation, reminding stakeholders that one part of ESG was not equal to another. Benarey said that in the environmental space – for example, around climate - there was more consensus around what the leading indicators were. However, she said that “nature is a different topic”, adding that around the ‘Social’ aspect of ESG, the circumstances were completely different once again. #esg #esgstrategy #customization #customisation #sustainablefinance #esgoperations #investmentoperations Read more here 👇