Asset managers have the responsibility to foster change, rather than force change, but they also cannot engage with issuers into perpetuity, said Ned Salter, global head of investment research at Fidelity International.
Speaking at the Sustainable Investment Festival this morning (11 July), Salter said the exclusionary approach to sustainable investing does not work as well as engagement, arguing that the theory that exclusion will raise the cost of capital for issuers doesn't hold to the extent that it needs to. "Now, asset managers cannot engage into perpetuity because engagement into perpetuity is permission to hold a security forever," he said. "We need to hold ourselves to account on that engagement activity with huge amounts of data and transparency." SIF 2022: Article 9 fund flows hold up in ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
