Pershing has just released the results of its latest survey from 70+ hedge fund allocators, revealing their true goals and motivations behind investing in ESG strategies.
Investing In ESG Strategies
Some top lines from the survey are:
- There is a tremendous amount of opportunity and interest from allocators in ESG investing, but they still have a way to go in deploying capital
- 30% of allocators surveyed are allocating opportunistically, but only 4% are doing so via Asset Allocation buckets
Q2 2022 hedge fund letters, conferences and more
- What allocators need is increased expertise on the topic to be successful in ESG investing – 49% of allocators said they had “no level of expertise”
- Allocators are split on what they are trying to achieve through ESG, with 30% interested in impact, 20% in return enhancement, and 15% in faith-based objectives
- Areas that are piquing allocator interest are: air pollution reduction, plastic use reduction, water scarcity reduction (nearly 10% of allocators agree to this), and talent development and retention (11% of respondents agree)
Is ESG going to be the next big thing in alternative investments?