See active management as much more flexible than passive to target specific fixed income ESG issues.
Point to clean energy as the most attractive theme for equity ESG funds.
Consider ESG objectives the most important when selecting fixed income ESG funds.
HOW ARE FUND SELECTORS
THINKING ABOUT ESG?
In the second issue of our semi-annual gatekeeper report, we surveyed 210 fund selectors in Europe and Asia to learn more about their views on various ESG issues. We found that globally, appetite for ESG investment options continues to grow. However, considerations are different for equity and fixed income strategies, and priorities differ by geographic region.
Positive screening & thematic investing are most important when selecting fixed income ESG funds
Clean energy and carbon reduction considered top themes for Article 9 funds
Performance remains top of mind when selecting fixed income funds
Gatekeepers attach more importance to ESG offerings when serving younger clients
Investment grade credit to see largest allocations increase within fixed income ESG
Global equity is the most popular ESG equity strategy
Better definitions and standards seen as best way to minimise greenwashing
A third of gatekeepers say they frequently encounter greenwashing
ESG ratings vs. ESG benchmark remains the prime reporting requirement from managers
UNPRI seen as essential sustainability accreditation by a strong majority
Active management is the preferred approach for both equity and fixed income ESG
Active still seen as best channel to target ESG and navigate market uncertainty
We approach responsible investing in a manner consistent with Prudential Financial Inc.’s (PFI’s) long-term commitment to sustainability. As active investors, we strive to embed ESG best practices throughout our investment, risk and talent management processes, while delivering investment performance and staying true to our role as a fiduciary and risk manager.
ESG AT PGIM INVESTMENTS
Source: PGIM Investments’ ESG Research of Gatekeepers in Europe and Asia, as of 31 May 2022.