Capital Group: Global investors favour active funds as concerns mount over 'S' issues

63% opt for active over passive

Over half (63%) of global institutional investors prefer to use active funds over passive ones to integrate ESG factors, according to Capital Group’s 2022 ESG Global Study

The report, which surveyed the responses of 1,130 institutional and wholesale investors, including pension funds, insurance companies, fund of funds and financial advisors, revealed nearly two-thirds opted for active funds for ESG integration, with 80% favouring equities as an asset class, compared to 58% who favoured bonds. According to the report, a number of investors expressed concern that environmental issues were being "overlooked" by climate concerns, with 41% of respondents echoing this sentiment. Environmental issues continue to dominate allocation decisions, with the share o...