Risk First, a Moody’s Analytics company, has today published research that finds 71% of portfolio managers are currently unable to view the performance attribution of ESG investment factors.
The research, which looks at portfolio managers’ ability to see the impact on investment performance of ESG factors alongside traditional factors, also shows that only 15% have complete visibility of ESG factors for performance analysis, while a further 15% said they can view ESG factors, but only on a limited basis.
The findings align with rising demand among investment managers for better visibility of drivers behind portfolio performance in real time.
“Having a consistent, accurate—and customizable—view of performance of both ESG and traditional factors is crucial for investment managers, to help them identify their performance drivers. It’s all about enabling better insight to discover new opportunities and for clear performance communication with the end-investor,” commented Owais Rana, US Business Development at RiskFirst.
Matthew Seymour, CEO of Risk First, added: “With seismic shifts in investor demand, coupled with rising regulatory pressure, investment managers must adapt to meet ESG preferences of their clients and regulators or risk being left behind. As an increasingly attractive investment option, the importance of having the right tools in place to understand both ESG and traditional factors cannot be overstated.”
Acquired by Moody’s in 2019, RiskFirst’s products allow institutional investors to better evaluate risk and understand portfolio performance, enabling better investment decisions.
