FundFire: Investors Push Hedge Funds to Dive Deeper with Responsible Investing
The hedge fund industry is becoming a bit greener as responsible investing moves away from being a niche pursuit, according to a new survey and report. But while more assets are being invested with responsible principles in mind and investor inquiries continue to rise, at the same time, challenges around definitions and cost remain, industry watchers say.
Hedge fund firms worldwide have seen an approximately 50% increase year-on-year in demand from current and prospective clients for responsible investing options, with interest up even higher – at 70% – for North American firms. That’s according to a survey of 80 hedge fund firms with a combined $550 billion in assets under management conducted by the Alternative Investment Management Association (AIMA) and the Cayman Alternative Investment Summit (CAIS) between December 2017 and February 2018. Just over 18% of respondents were based in North America while 44% were based in the U.K. and over 15% were based in Europe. This comes as the firms surveyed report having already allocated at least $59 billion to responsible investing.