Thursday, 15 September 2022
Asset managers are facing hundreds of ESG fund downgrades
Asset managers across Europe may have to reclassify hundreds of ESG funds in the coming months.
Reviews by researchers including Morningstar show that only a small fraction of funds registered as Article 9 – the EU’s strictest ESG category – actually lives up to the level of sustainable investments required under European rules.
Lawyers advising the industry are now warning that many fund managers may have little choice but to change their official ESG designations. The upshot is that clients who thought they’d signed up for the EU’s cleanest ESG product suddenly are left with something else.
NZ Super moves NZ$25 billion or 45% of total portfolio to climate benchmarks
New Zealand Superannuation Fund has shifted NZ$25 billion (US$14.99 billion) of its passive global equity investments, or around 45% of its total portfolio, to MSCI indices aligned with the Paris climate accord.
The investments are now benchmarked against the MSCI World Climate Paris Aligned Index and MSCI Emerging Markets Climate Paris Aligned Index, the sovereign wealth fund says in a statement on 14 September.
Singapore’s bourse and central bank launch ESG disclosure portal
Singapore’s stock exchange has joined hands with the central bank to launch ESGenome, a digital disclosure portal that will allow companies to effectively report environmental, social and governance data and draw global investors looking to invest sustainably.
Corporate sustainability disclosures are among the largest sources of ESG data globally and the new portal will allow investors to access it in a consistent and comparable format, Singapore Exchange (SGX) and the Monetary Authority of Singapore (MAS) say in a statement on 13 September. “There is a great scope to harness technology to enhance such disclosures and comparability of data to support the financing decisions needed for a credible transition.”
Singapore regulator calls on banks and wealthtechs to collaborate to bridge tech gap
Singapore’s banks should collaborate with wealth technology firms to bridge the technology gap amid ongoing digitalisation in the sector, according to Sopnendu Mohanty, chief financial technology officer of the Monetary Authority of Singapore.
He said many financial institutions need “massive restructuring, redesign of the backend platform” to meet investor and customer requirements.
He noted that Singapore has seen a massive growth in assets under management, and that between the city state and rival financial hub Hong Kong, there is an estimated US$4 trillion of assets.
Mutual Funds Vs Equity: Which is a Better Investment?
Investments in equities and mutual funds are rising at a rapid pace in 2022. It is imperative to have proper knowledge of all the investment avenues available to an individual and then make an informed choice. The debate of equity vs mutual funds is going on for a long time now. A lot of people are investing in them, but still, there is a part of the population who are still looking to gain knowledge in this field. This article will not only tell you about what these are but will also simplify by mentioning the difference between equity and mutual fund. This article will also shed light on the debate of mutual funds vs equity shares and tell you which one is a better option for you to invest in.
SEC Charges Loop Capital Markets in First Action against Broker-Dealer for Violating Municipal Advisor Registration Rule
The Securities and Exchange Commission today charged Chicago-based Loop Capital Markets, LLC for providing advice to a municipal entity without registering as a municipal advisor. The action marks the first time the SEC has charged a broker-dealer for violating the municipal advisor registration rule.