Super funds seeking ESG track record

Superannuation funds are taking increased interest in responsible strategies, according to Natixis Investment Managers, with funds seeking a responsible track record. 

In the firm’s mid-year strategist outlook, which surveyed 42 of the firm’s experts, it said the experts had the strongest conviction in environmental, social and governance (ESG) investing and described how it had developed during the pandemic. 

Some 76% of strategists surveyed said they expected ESG investing would be a winner following the pandemic, placing it third behind technology and healthcare, while over a quarter felt it was a ‘must have’ in portfolios.  

Louise Watson, managing director and head of distribution at Natixis Investment Managers, Australia and New Zealand, said the trend was now being picked up by super funds.  

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“ESG investing is now considered mainstream and a ‘must have’ and we are especially seeing this with local super funds. In our experience, many are selecting managers with a strong responsible investing track record to ensure positive member outcomes and we don’t expect this trend to dissipate in the future,” Watson said. 

Meanwhile, over half of respondents felt the value rally, which was a key rotation during the pandemic, still had further to run over the next few months but only 26% thought the outperformance of value would last for a few years. Some 10% thought that it was already over.