Thursday, April 3, 2014

European study finds no performance differences in SRI portfolios

A study by European asset manager Amundi concludes that incorporating SRI to the investment process produces no significant underperformance or overperformance.

In addition, the study says, the inclusion of SRI criteria does not produce a significant cost on either the European or global investment universes.

“Furthermore, some SRI factors are likely to become more important in the future, with differences in corporate practices having considerable impacts on profitability. SRI management can therefore be a relatively cost-free way to benefit from this evolution.”

Amundi notes that choosing to invest in SRI products also involves non-monetary considerations in terms of reputation and investors’ responsibilities to future generations.

Amundi uses a best-in-class approach on a global investment universe, combined with internal analysis. The company’s SRI portfolio management is based partly on exclusion criteria for the worst-rated securities and partly on the portfolio’s overall ESG rating, in absolute and relative terms compared to its benchmark.

Paris-based Amundi has €780 billion in assets under management, with SRI assets of €66.2 billion.

Read the study (pdf).

No comments:

Post a Comment