ESG may be the only common factor

In Q2 2020, CAMRADATA had 17 Assisted Searches totalling £1.2billion AUM.  Assisted Searches are where institutional investors contact us in order to help them find strategies across specific asset classes to in order to assign mandates, or where, if they are consultants, they look to create buy lists to recommend to their clients. 

Were there any trends, I hear you ask? Seemingly not. These searches came across various regions, from England, to Ireland, to Scotland to Switzerland; from Pension Fund, to Insurer, to Consultant, to Family Office – and across all types of asset class; Distressed Debt, Global Credit, UK Equities, Multi Asset, Global Equities and all types of ESG investment. 

ESG does stand out. But why now? Well there’s a passion for sustainable investment, that’s for sure, and maybe after the strange times we have experienced during 2020, sustainability is needed more than it ever has been needed before. 

According to a report written by AON, Covid-19 has compelled 50% of DC pension schemes to review their objectives.  Therefore, although managers were researching these areas previously, the pressure has now stepped up. 

We have also seen the addition of a set of Diversity & Inclusion questions to CAMRADATA Live; and although we have not yet had a specific Assisted Search with this as a focus, as we have with ESG, we can expect to see this, too, to become the norm in the not too distant future.