Barron’s
As the approach soared in popularity, investment companies large and small seized the opportunity to design and market new ESG [environmental, social and governance] funds and rankings. Professionally managed assets with ESG mandates swelled to $46 trillion globally in 2021, representing nearly 40% of all assets under management, according to Deloitte’s Center for Financial Services. By 2024, that figure is forecast to rise to $80 trillion, or more than half of all professionally managed assets.
Now, Russia’s invasion of Ukraine has created the first real test for this popular investment trend. By eschewing traditional energy stocks and defense shares, which are having a banner year, and embracing low-carbon-footprint technology stocks, which aren’t, many ESG funds lost money in the first quarter, and underperformed their benchmarks. More
They would have done better if the bought Ratheon, Lockheed Martin, & Booze stocks.
SPEAKING OF UNSUSTAINABLE, 30 YR FIXED UP TO 6.75% TODAY WITH NO END IN SIGHT
You should have seen 30 year fixed under Carter!
mortem tyrannis
izlamo delenda est …
These “sustainable” funds are a fad, like hula hoops, pet rocks, and Nehru jackets. Fads burn out.
ESG=Extra Serious Grift
I was in a meeting about these and how we were going to offer them to clients, as well as invest as a nonprofit. What a pantload the advisor was trying to sell!
I am very glad I retired. The nonprofit I worked in is totally woke: 2 non-POCs on a 15 seat board.