GLOBAL - Two thirds of investment managers (65%) believe the effects of globalisation have a material impact on mainstream asset performance according to a survey by Mercer Investment Consulting (Mercer IC).
Over 150 respondents from around the globe were asked how significant environmental, social and corporate governance (ESG) issues related to investment performance and expectations of future client demand would be for related investment services.
Over 60% of respondents claimed corporate governance was a relevant issue. However topics such as climate change have yet to stir the industry with only 15% saying it played a role, though this is expected to change in the future.
The impact of terrorism is also a key concern, but managers noticeably outside the US believe its impact and relevance will wane within five years.
Jane Ambachtsheer (pictured), global head of Mercer IC’s responsible investment business said: “The environmental and social effects of globalisation are being experienced by governments, local communities and businesses across all regions, as pressure on resources grow.
“Similarly, corporate scandals have hit the headlines in almost all regions so it unsurprising globalisation and corporate governance are viewed as the most responsible investment factors,” Ambachtsheer concluded. In addition, investment managers from every region barring Australia expect to see some client demand for ESG factor to be integrated into investment processes this year. Current anticipated demand is highest in Europe (ex UK) at 26% followed by the UK at 21%.
By Daniel Flatt
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