A new breed of exchange traded funds (ETFs) based on environmental, social and governance principles are gaining traction among the newer generation of investors as more people design their investment portfolios to reflect their own values, while seeking to generate value.
Historical data has shown that investing in sustainability has usually met and may exceed the performance of comparable traditional investments. The potential outperformance is attributed to better governance practices, along with the exclusion of poison-pill anti-takeover provisions, transparency about executive pay and policies that favor shareholder rights.
With these socially responsible parameters, companies may be taking on a long-term business model. In an attempt to head off any environmental and social problems that their operations may create, companies are able to obviate potential regulations and diminish political risks ahead. Moreover, this proactive approach may diminish the risk of conflict with nongovernment organizations and other advocacy groups that can affect sales and brand recognition.
On the upcoming webcast, The Role of ESG Strategies and the Millennial Investors, several industry veterans will dive into the world of ESG investments and potential growth opportunity in the next generation of investors. The webcast panel includes:
- Sharon French, Head of Beta Solutions at OppenheimerFunds
- Ned Dane, Head of Private Client Group at OppenheimerFunds
- Mo Haghbin, Head of Product and Beta Solutions at OppenheimerFunds
- Laura Nishikawa, Head of Fixed Income in ESG Research at MSCI
Aligning investments to an investor’s personal values is becoming increasingly important and through a recent study of ultra-high-net-worth millennials, surveyed by OppenheimerFunds and Campden Wealth, the next generation of investors is planning to incorporate ESG standards to their portfolios.