Recent moves by Kansas and Texas pension funds signal an accelerating trend of US state pension funds reducing exposure to China amid growing geopolitical tensions.
For sophisticated asset owners used to outsourcing private market investments, the new test ahead is becoming how to divest some of their exposure as public markets tumble.
For asset owners and managers, sustainable long-term investing has evolved from divestment to active ownership strategies that foster better business practices.
Australia’s second largest superannuation fund will only divest as a last resort, saying its better to work with, rather than against, those companies with ESG risks.
Japan's largest life insurer has made more than 90% of its carbon-heavy investees disclose their greenhouse gas reduction targets through active engagement.
Low interest rates and rampant liquidity are offering companies more financing sources – and limiting the ability of ESG-conscious investors to influence them via divestment.