Luxembourg
21 March 2017
Reporter: Stephanie Palmer

ESG changing the face of asset management


The role of the asset manager is evolving as a more challenging regulatory environment and changing demographics bring environmental, social and governance issues to the fore, heard attendees at the ALFI European Asset Management Conference in Luxembourg.

One speaker, Xavier Lépine, chairman of the board at asset manager La Française, noted that the role “depends on the type of investors and the type of assets that are managed”.

He suggested that pension funds, for example, have a sense of fiduciary duty and responsibility to the next generation, feeling obliged to both protect client money and to take environmental issues into account.

Private equity investors, however, expect “superior returns” from an asset class that is difficult to access, and require assistance in managing their investments.

Peter Branner, CEO of SEB Investment Management, added that the industry is seeing higher levels of accuracy and transparency. SEB has noted “demand for governance products like microfinance”, he said, with a particular push from institutional clients.

In its traditional products, it is seeing a “gradual inclusion of governance issues in our investment process”, Branner said, and this engagement is increasingly appreciated by institutional fund clients, which are starting to express more interest in governance and social behaviour, particularly in emerging markets.

Branner added that addressing social and governance issues is “interlinked” with fund performance and achieving the best return for investors.

“It’s not only about getting the last dime out of the investment, it’s actually also about getting a lot out of it long-term,” he said. “Companies that behave well tend to do better.”

More Industry news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Clearstream promises post-Brexit services continuity
20 October 2017 | London | Reporter: Jenna Lomax
Despite the uncertainty that came after the referendum results last year, Clearstream said its main objective through Brexit was to minimise risk of cross-border settlement
SIX successful in migrating clearing payments under ISO 20022
19th October 2017 | Zurich | Reporter: Jenna Lomax
The new Swiss Interbank Clearing (SIC) payment system facilitates the cash-side settlement of securities transactions in real-time
Peel Hunt expands Torstone’s Inferno into US business
13 October 2017 | London | Reporter: Theo Andrew
According to Peel Hunt, the agreement with Torstone will give the firm more flexibility to develop its US business
Orange and BASF select BNY Mellon as depositary bank
12 October 2017 | New York | Reporter: Becky Butcher
BNY Mellon has been appointed as successor depositary bank by both BASF, a German-based chemical company and Orange, the telecommunications company, for their American depositary receipt programmes
BNP Paribas wades into collateral pools with triparty service
05 October 2017 | London | Reporter: Drew Nicol
As a triparty collateral agent, BNP Paribas Securities Services handles its clients’ collateral needs, from net exposure calculation, automatic collateral allocation and substitution, to physical settlement and custody
Smartkarma opens European hub in London
25 September | London | Reporter: Theo Andrew
According to Smartkarma, the move means European analysts can now register with the platform to join the data platform, offering a network approach to insights and publishing tools
First RFQ inflation swap transactions executed on Tradeweb platform
25 September 2017 | London | Reporter: Stephanie Palmer
Tradeweb has completed the first cleared inflation swap transactions using request-for-quote protocol, on its European Interest Rate Swap platform
More Industry news