Trustnet Magazine 78 November 2021 | Page 32

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Fool ’ s green

Like all overnight successes , it has taken years of blood , sweat and tears to get ESG to where it is today . Rarely does an investment theme or ethical bias establish itself as mainstream , but every asset manager will attest to ESG being hardwired into the core of their investment strategy . And the reason is simple . There is huge demand for sustainable investment products from the smallest of ISAs to the largest of institutional investors . Products offering exposure to ESG strategies have proliferated . Despite the Covid-19 pandemic – or perhaps as a result of it – sustainable fund products accounted for 52 % of the € 414bn in net new flows in 2020 , making up 11 % of the € 10trn + in European-domiciled assets by the end of the year , according to data from ALFI . With all this launch activity , can investors be comfortable they really know what they are buying into ?

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Look before you leap There has been considerable debate about the lack of disclosure of ESG data . Equities have the most available , but that only covers about half the listed companies . There is far less data around for fixed income and alternative assets . This situation is changing rapidly , but how can investors be sure that asset managers have a handle on the companies they invest in ? Mona Shah , head of sustainable investments at Stonehage Fleming ,
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