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Investment Managers Turn to Impact/ESG Investing

Aug 09, 2019 - Impact Investing, ESG by CCM Invests

Impact investing has grown exponentially in recent years, and it does not seem to be slowing down any time soon.  According to Morningstar, ESG funds in the U.S. have attracted $8.4 billion in just the first half of 2019 – already shattering the previous annual record of $5.4 billion in 20181.  With this shift in investor behavior, more investment managers are looking to implement impact/ESG strategies to join the movement.  But are they all qualified to be doing so?

Experienced impact/ESG investment professionals have track-records of both financial and impact performance.  It is extremely important to find evidence of a well-applied strategy through statistics and reporting. Otherwise, the impact/ESG-labeled strategy could simply be a characteristic applied to a prospectus or presentation but doesn’t create or deliver the impact that the investor is being promised.

At CCM, throughout our nearly two decades of experience in impact/ESG investing, we are committed to showing our clients the numerous positive impact outcomes of their investments that go beyond checking a box for impact/ESG investing.  As pioneers and innovators, we continuously look at new ways for our clients’ investments to have a meaningful impact – whether it’s adding new impact themes, adding new impact metrics, or updating our technology to improve upon our reporting.

Just like any investment, there are risks and returns and a spectrum of offerings in the impact/ESG investing space so conducting due diligence and knowing the experience and history of the investment manager is critical.

 

1,2 https://www.wsj.com/articles/beleaguered-money-managers-find-bright-spot-in-esg-11562846400

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