Funds Europe research: Investors prefer different ESG strategies for public and private investments

Many investors choose to have a different investment strategy for public and private markets, Funds Europe research suggests.

Over 60% of investment professionals in our survey said they had a different strategy for private markets versus public markets investments – but a sizeable 30% said they didn’t.

While it has been easier to compare the sustainability of traditional asset classes, such as publicly listed equities and bonds, it has been more challenging for private assets, which can be less transparent.

Respondents said they operate different strategies for different asset classes, but they often have an overarching approach to sustainability and ESG that guides these strategies.

One respondent to our survey said: “Private equity businesses can hold greater emphasis on financial returns than ESG factors, although this is changing as sustainability becomes increasingly important.

“Public markets are subject to stricter reporting and transparency guidelines, some of which may specifically target sustainability. Private market investments may focus on long-term impact and customisation, while public market investments provide liquidity, transparency and scalability.”

*Read the latest from our ‘Reshaping Investment: Tokenisation, ETFs and Sustainability’ report, which is produced in partnership with Caceis, here.

© 2023 funds europe

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