Competition and collaboration: Active versus passive managers

Do active managers have an ESG advantage?

Competition between active and passive managers has always been fierce and the world of ESG is no exception, with passives eating into the lead active funds had established in this space.

Can passive managers deliver a true ESG product or is there an advantage for active managers in this field? While passives have developed their approach to ESG, I firmly believe active managers can add significant value over and above passives in two key areas: 1. Identifying leaders and laggards  2. Valuing ESG risk alongside other financial indicators Identifying leaders and laggards  Sustainability will be a long-term driver for change in markets, countries, sectors and companies, generating opportunities but also risks. Active managers with sustainability expertise have...