1Federated Hermes International, “ESG Investing: How Covid-19 Accelerated the Social Awakening,” Q4 2020.
2Morningstar, “ESG Investing Keeps Pace with Conventional Investing in 2022,” January 2023.
3BofA Global Research: “DEI: The High Cost of Slow Progress,” March 4, 2022.
4BofA Global Research, "ESG 2.0: 10 FAQs from Clients", June 11, 2021.
All investing involves risk. Past performance does not guarantee future results.
Risk management and due diligence processes seek to mitigate, but cannot eliminate risk, nor do they imply low risk.
Sustainable and Impact Investing and/or Environmental, Social and Governance (ESG) managers may take into consideration factors beyond traditional financial information to select securities, which could result in relative investment performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. Further, ESG strategies may rely on certain values based criteria to eliminate exposures found in similar strategies or broad market benchmarks, which could also result in relative investment performance deviating.
There is no guarantee that investments applying ESG strategies will be successful . There are many factors to take into consideration when choosing an investment portfolio and ESG data is one component to potentially consider.
Social impact bonds are a relatively new and evolving investment opportunity, which is highly speculative and involves a high degree of risk. An investor could lose all or a substantial amount of their investment.