ESG funds unfazed by bear market’s return

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Green fund managers say their popular products will withstand the sharp slide in markets and claim demand for sustainable investing is an “unstoppable force”.

Tan Kueh of Sentient Impact, Paul Docherty of Spirit Super and Brian Cahill of Moody’s at the AFR ESG Summit on June 15.But the markets expect booming environmental, social and governance funds – which manage more than $2.2 trillion on behalf of global investors, according to Morningstar and often have a bias towards beaten-up tech stocks – to retain momentum despite the downturn.

“I think we’re seeing a change in the momentum, a shift in the growth rate. But I think when we look through the bull market cycle, we will continue to see more money move in this way.” But he said investing in sound environmental and social outcomes was nonetheless justifiable nonetheless of the “sole purpose of existence” to create the best possible retirement income for members.“When you hear people talk about investing through the cycle ... we, as long-term patient capital, can take advantage of that thematic through the cycle and benefit from what we see as being shifts in aggregate demand and also risks associated with transitioning economies,” said Dr Docherty.

 

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Yep we are immune to world financial shocks …. Can they be more naive

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