Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

35899

DWS-sponsored report reveals the rise of ESG’s ‘S’ pillar in pension portfolios

RELATED TOPICS​

The ‘S’ pillar of environmental, social and corporate governance (ESG) is becoming an increasingly important driver of investment decision-making by pension funds, especially in light of the Covid-19 crisis, a new survey sponsored by DWS has found.

Sixty-six per cent of pension funds surveyed intend to increase their allocations to ‘S’ pillar passive funds over the next three years, while 67 per cent will select their passive manager based on their track record of delivery of their clients’ social agenda.
 
CREATE-Research, which conducted the analysis, surveyed 142 pension plans in 17 jurisdictions with collective assets under management of EUR 2.1 trillion. Forty of the pension plans subsequently took part in post-survey interviews to add qualitative depth to the findings. 

According to the report – Passive Investing 2021: Rise of the social pillar of ESG – Covid-19 was cited by 59 per cent of respondents as a ‘key driver’ of their heightened interest in the ‘S’ pillar because of its growing materiality.

Almost a quarter, 22 per cent, of respondents reported that their ‘S’ pillar passive funds outperformed wider markets in the March 2020 crash.

Over a third of respondents, 36 per cent, seek to manage difficult-to-model fat-tail risks by investing in the ‘S’ pillar.
 
This is the fourth year that DWS has sponsored the research, which also broadly explores the uptake by pension funds of passive investing. Previous reports have focused on stewardship and the environment.
 
“This important research shows not only that pension funds continue to embrace passive investments, but also the growing dominance of ESG and the importance of the ‘S’ pillar within that,” says Simon Klein, DWS Global Head of Passive Sales.
 
Professor Amin Rajan, CREATE-Research Chief Executive, says: “Our 2021 survey shows how Covid-19 has exposed long-concealed failings of today’s market economies, but also how the increasing prominence of the ‘S’ pillar of ESG can play a role in addressing those failings.”

Latest News

Global index revenues increased 9.3 per cent in 2023, totalling a record USD5.8 billion, according..
Octopus Investments (Octopus) has announced it has launched a Natural Capital Strategy...
Research firm focused on Alternative UCITS funds, Kepler Absolute Hedge, has published its Market Intelligence..

Related Articles

Trends
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100 million deals announced this month alone...
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100..
Different flavours
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led, multi-boutique global asset manager with over USD20 billion under management, recently undertook a survey with 204 UK investment professionals, seeking insights into their perceptions and attitudes towards boutique asset managers...
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led,..
UK map
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be worth billions of pounds in the coming years...
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be..
The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a possible buyout of EY’s Italian consulting branch...
The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by