AMWatch

Fund managers find alpha in "artificially low" ESG scores

A lack of reliable ESG data in emerging markets is proving a boon for some of the heavyweights of global finance.

Data disclosure “across the board is pretty challenged” in emerging markets, compared with the developed world, “and especially on some of the more nuanced environmental and social-related issues,” said Luke Barrs, managing director and global head of fundamental equity client portfolio management at Goldman Sachs Asset Management. | Photo: Andrew Kelly/Reuters/Ritzau Scanpix/REUTERS / X02844

Federated Hermes is among investment firms that have spent the past year building its ESG exposure to emerging markets, where it says “artificially low” environmental, social and governance ratings have created openings for investors willing to do their own research.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

Oil fund is biggest investor in illegal West Bank settlements

A report examining investments in illegal Israeli settlements on the Palestinian West Bank reveals that Norway’s oil fund is the largest investor in 50 companies located there, and that AB Industrivarden and Nordea are also among the 10 largest.

Big ESG funds are doing worse than the S&P 500

Funds linked to environmental, social and governance principles are by definition supposed to minimize risks tied to those three factors. In 2022, the approach did little to help protect investors from the brutal slide in the financial markets.

Further reading

Related articles

Latest news

AMWatch job

See all jobs

See all jobs

Watch job

See all jobs

See all jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch