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Questions and Answers
Which group acts as the legal owner of assets under management?
Which group acts as the legal owner of assets under management?
Who can outsource asset management to an asset manager?
Who can outsource asset management to an asset manager?
Which group is required to act as a fiduciary to clients?
Which group is required to act as a fiduciary to clients?
Which of the following accurately describes the size and scope of ESG investing?
Which of the following accurately describes the size and scope of ESG investing?
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What are some key market drivers of ESG integration?
What are some key market drivers of ESG integration?
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Who are some of the key stakeholders involved in ESG integration?
Who are some of the key stakeholders involved in ESG integration?
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Which strategy had the largest growth over the 2016-2020 period?
Which strategy had the largest growth over the 2016-2020 period?
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Which strategy is the largest in Europe?
Which strategy is the largest in Europe?
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Which strategy commands the most assets in the United States?
Which strategy commands the most assets in the United States?
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Which strategy is the predominant one in Japan?
Which strategy is the predominant one in Japan?
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Which organization was responsible for proposing long-term solutions for sustainable development in response to environmental concerns?
Which organization was responsible for proposing long-term solutions for sustainable development in response to environmental concerns?
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What is the main focus of ESG investing?
What is the main focus of ESG investing?
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Which form of socially responsible investment (SRI) was most popular in the early days of ESG investing?
Which form of socially responsible investment (SRI) was most popular in the early days of ESG investing?
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Which fund was one of the first ethical mutual funds to incorporate religious traditions into its investment screens?
Which fund was one of the first ethical mutual funds to incorporate religious traditions into its investment screens?
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Which of the following is NOT considered a key market driver of ESG integration?
Which of the following is NOT considered a key market driver of ESG integration?
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Who are the main stakeholders in responsible investment?
Who are the main stakeholders in responsible investment?
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Which of the following is NOT a role of shareholders in a company?
Which of the following is NOT a role of shareholders in a company?
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Which of the following is NOT considered an asset owner?
Which of the following is NOT considered an asset owner?
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According to the Global Sustainable Investment Alliance (GSIA) report, what was the total value of sustainable investing assets in the five major markets at the start of 2020?
According to the Global Sustainable Investment Alliance (GSIA) report, what was the total value of sustainable investing assets in the five major markets at the start of 2020?
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Which region has the highest proportion of sustainable and responsible investing assets?
Which region has the highest proportion of sustainable and responsible investing assets?
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Which region experienced a decline in sustainable investing assets relative to total managed assets since 2018?
Which region experienced a decline in sustainable investing assets relative to total managed assets since 2018?
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Which sustainable investment strategy had the largest assets under management globally in 2020?
Which sustainable investment strategy had the largest assets under management globally in 2020?
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Which term refers to the form of responsible investment that primarily considers ethical behavior?
Which term refers to the form of responsible investment that primarily considers ethical behavior?
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What were the key developments between early and modern SRI?
What were the key developments between early and modern SRI?
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What event in the early 2000s led to an increasing emphasis on good corporate governance and specific regulations?
What event in the early 2000s led to an increasing emphasis on good corporate governance and specific regulations?
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Which report effectively coined the term 'ESG' and made the case for embedding ESG factors in capital markets?
Which report effectively coined the term 'ESG' and made the case for embedding ESG factors in capital markets?
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Which of the following is NOT considered a key driver for ESG integration?
Which of the following is NOT considered a key driver for ESG integration?
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What is the historical origin of ESG investing?
What is the historical origin of ESG investing?
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Which region has the highest proportion of sustainable and responsible investing assets?
Which region has the highest proportion of sustainable and responsible investing assets?
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Which of the following accurately describes the role of asset managers in the investment process?
Which of the following accurately describes the role of asset managers in the investment process?
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Which of the following is NOT an example of an asset owner?
Which of the following is NOT an example of an asset owner?
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What is the main responsibility of intermediaries in the investment process?
What is the main responsibility of intermediaries in the investment process?
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Which asset class had the largest allocation of global sustainable investing assets in 2018?
Which asset class had the largest allocation of global sustainable investing assets in 2018?
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What was the percentage of assets held by retail investors in 2012?
What was the percentage of assets held by retail investors in 2012?
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Which strategy had the largest growth over the 2016-2020 period?
Which strategy had the largest growth over the 2016-2020 period?
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Which region had the highest proportion of sustainable and responsible investing assets?
Which region had the highest proportion of sustainable and responsible investing assets?
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Which of the following is NOT a stakeholder in responsible investment?
Which of the following is NOT a stakeholder in responsible investment?
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Which of the following is NOT a role of shareholders in a company?
Which of the following is NOT a role of shareholders in a company?
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What is the main goal of asset owners?
What is the main goal of asset owners?
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Which of the following is NOT a key market driver of ESG integration?
Which of the following is NOT a key market driver of ESG integration?
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Which region has experienced a decline in sustainable investing assets relative to total managed assets since 2018?
Which region has experienced a decline in sustainable investing assets relative to total managed assets since 2018?
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Which strategy had the largest growth over the 2016-2020 period?
Which strategy had the largest growth over the 2016-2020 period?
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Which organization conducts research in the five major markets for responsible investment every two years?
Which organization conducts research in the five major markets for responsible investment every two years?
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What proportion of total managed assets do responsible investing assets make up in Canada?
What proportion of total managed assets do responsible investing assets make up in Canada?
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Which international conference led to the establishment of the UN Commission on Sustainable Development?
Which international conference led to the establishment of the UN Commission on Sustainable Development?
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Which term was commonly used to describe responsible investing before the term 'ESG' came into use?
Which term was commonly used to describe responsible investing before the term 'ESG' came into use?
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Which mutual fund, launched in 1928, was one of the first to incorporate religious traditions into its investment screens?
Which mutual fund, launched in 1928, was one of the first to incorporate religious traditions into its investment screens?
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Which movement gained global prominence in the late 1970s through a divestment campaign against South Africa's system of apartheid?
Which movement gained global prominence in the late 1970s through a divestment campaign against South Africa's system of apartheid?
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Which of the following reports had a significant influence on the investment industry's understanding of climate change?
Which of the following reports had a significant influence on the investment industry's understanding of climate change?
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The disinvestment campaign in South Africa expanded globally the disinvestment movement in the late '70s. What was the main focus of the disinvestment campaign in South Africa?
The disinvestment campaign in South Africa expanded globally the disinvestment movement in the late '70s. What was the main focus of the disinvestment campaign in South Africa?
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Which organization launched the Principles for Responsible Investment (PRI) in 2006?
Which organization launched the Principles for Responsible Investment (PRI) in 2006?
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What were the key developments between early and modern SRI?
What were the key developments between early and modern SRI?
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Study Notes
Asset Management
- Institutional investors, such as pension funds, endowments, and sovereign wealth funds, act as the legal owners of assets under management.
- Asset managers can outsource asset management to an asset manager.
Responsible Investment
- Asset managers are required to act as fiduciaries to clients.
- Asset owners, such as pension funds, outsource asset management to asset managers.
ESG Investing
- ESG (Environmental, Social, and Governance) investing focuses on long-term sustainability and responsible investment.
- Key market drivers of ESG integration include climate change, social inequality, and corporate governance.
- Stakeholders involved in ESG integration include asset owners, asset managers, and intermediaries.
ESG Integration Strategies
- Strategies include negative screening, positive screening, ESG integration, active ownership, and impact investing.
- ESG integration had the largest growth over the 2016-2020 period.
- Impact investing is the largest in Europe.
- ESG integration commands the most assets in the United States.
- Active ownership is the predominant strategy in Japan.
History of ESG Investing
- The United Nations Environment Programme Finance Initiative (UNEP FI) proposed long-term solutions for sustainable development in response to environmental concerns.
- The main focus of ESG investing is on long-term sustainability and responsible investment.
- Socially Responsible Investment (SRI) was most popular in the early days of ESG investing.
- The Pax World Fund, launched in 1971, was one of the first ethical mutual funds to incorporate religious traditions into its investment screens.
Market Trends
- The Global Sustainable Investment Alliance (GSIA) reported a total value of sustainable investing assets of $30.7 trillion in the five major markets at the start of 2020.
- Europe has the highest proportion of sustainable and responsible investing assets.
- North America experienced a decline in sustainable investing assets relative to total managed assets since 2018.
- ESG integration had the largest assets under management globally in 2020.
Key Reports and Organizations
- The United Nations Environment Programme Finance Initiative (UNEP FI) proposed long-term solutions for sustainable development.
- The Global Reporting Initiative (GRI) effectively coined the term 'ESG' and made the case for embedding ESG factors in capital markets.
- The Global Sustainable Investment Alliance (GSIA) conducts research in the five major markets for responsible investment every two years.
Industry History
- The disinvestment campaign in South Africa, which started in the 1970s, led to an increasing emphasis on good corporate governance and specific regulations.
- The key developments between early and modern SRI include the rise of ESG integration, active ownership, and impact investing.
- The UN Commission on Sustainable Development was established following the 1992 Rio Earth Summit.
- The term "socially responsible investment" was commonly used to describe responsible investing before the term 'ESG' came into use.
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Description
Test your knowledge on asset management ownership, outsourcing, fiduciary responsibilities, ESG investing size and scope, market drivers of ESG integration, and key stakeholders involved in ESG integration.
