Actively managed funds ‘bleed’ client cash

For 11 of the past 12 quarters, clients have redeemed cash from actively managed funds registered as “promoting” ESG goals. — Bloomberg

COPENHAGEN: A long-held truism of environmental, social and governance (ESG) is being challenged, namely the idea that the strategy is best-suited to active fund management.

For 11 of the past 12 quarters, clients have redeemed cash from actively managed funds registered as “promoting” ESG goals, otherwise known as Article 8 under European Union (EU) regulations.