IPE's Hoekstra: ​Pension funds demand engagement success from external managers

15 November 2022

Asset managers that cannot show serious results of their engagement efforts with listed companies have a hard time winning business from pension funds, according to a new survey from consultancy bfinance.

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According to a survey among 170 pension funds around the globe, 53% of participating schemes are unlikely to hire an asset manager that cannot demonstrate engagement successes.

Moreover, four in 10 funds demand asset managers to show at least one example of divestment for ESG reasons.

Impact investing

The survey also confirms the rise of impact investing as a core theme for pension funds. More than half of pension funds said they are unlikely to hire a manager that cannot report on the impact of their investments, for example on the UN Sustainable Development Goals.

This figure is considerably higher for pension funds than for other investors (insurance firms, endowments and family offices) who also participated in the survey (see chart below)...

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