Are ESG regulatory and policy measures driving asset allocation to Passive? - Seguridad Mania.com - España y América Latina

The rapid rise of passive investing is one of the stand-out phenomena of this century. Detractors have long argued that it is largely underpinned by excess liquidity from central banks in the wake of the 2008 Global Financial Crisis. Once that drains away, as has happened conspicuously in the last two years, the wheels will come off the passive bandwagon. After the underperformance of ESG investments in the bear market of 2022, ESG detractors appear to ignore the latest regulatory and policy overdrive, aiming to improve existing standards elevate ESG as a compensated risk factor in investment portfolios. These regulatory and policy measures are likely to have a significant impact on investors‘ asset allocation and use of Passive vehicles. Against this backdrop, Amin Rajan, CEO of CREATE Research and Sebastian Schiele, Global Head of Xtrackers Mandates & Solutions Sales at Xtrackers by DWS will elucidate the findings of the newly released Passive Investing Report 2024 “Are ESG regulatory and policy measures driving asset allocation?”. 156 pension plans have participated in the survey. They have provided practical insights into how investors are reacting to an increasing number of ESG-related regulatory and policy initiatives via their asset allocation. The survey conducted by CREATE Research is sponsored by Xtrackers. The webcast will address the following topics: • What ESG-related initiatives in terms of regulation and policy are currently underway? • How are these likely to increase ESG risk and opportunities being observed as compensated risk factors? • What developments could inhibit such evolution of ESG as a compensated risk factor? • How does this influence institutional investors‘ – chiefly pension funds‘ – view on asset allocation? • What does this mean for the adoption of passives and passive solutions‘ product development? • How are the manager selection criteria becoming ever more robust? The webcast will be moderated by Brendan Maton.