A recent Ignites article discusses an Allianz survey on ESG interest among retail investors. As we have seen for a while, interest in ESG across demographics has increased, leading manufacturers to offer more ESG products. This has occurred in the place space, too. Yet, 73% of respondents report difficult in assessing the funds for one or more E, S and/or G factors. One well-known reason for this gap between interest and understanding is the still nascent methods portfolio companies have to report ESG risks, thereby inhibiting a uniform approach by the funds and managers to synthesize that data, invest accordingly and report to investors the data is incorporated. Simply, there is not perfect information yet. Frustration by asset owners will persist until there is a consensus on reporting.
George Michael Gerstein advises financial institutions on the fiduciary and prohibited transaction provisions of ERISA. As co-chair of the fiduciary governance group, he assists clients with tracking, and understanding, the numerous fiduciary developments at the federal and state levels, including the rules and regulations of governmental plans. He also advises clients with respect to the fiduciary duty implications of ESG investing.