Specialist smart beta exchange-traded fund provider Ossiam has signed the UN-supported Principles for Responsible Investment (PRI), representing a global network of asset managers, owners and service providers working together to put ethical investment into practice.
Bruno Poulin, CEO of Ossiam.
PRI aims to provide a framework for integrating environmental, social and corporate governance (ESG) considerations into investment decision-making and ownership practices.
The voluntary adoption of PRI by Ossiam is the latest indicator of a growing momentum behind responsible investment mandates. This trend has been driven by a desire from investors for increased transparency and a recognition that ESG factors play a significant role in determining levels of risk and return. By reducing the exposure to reputational and litigation events related to firms with poor ESG records, investors are able to enhance the risk profile of their portfolios.
Socially responsible investing is currently one of the fastest growing areas of finance – leading index provider to the ETF industry MSCI reported that their ESG business, the world’s largest by both indices and linked assets under management, grew revenues by 33% over 2015 to $38m. The space has also proved very popular with ETF providers as an increasing number of issuers bring ESG-themed funds to market.
Bruno Poulin, CEO of Ossiam, commented in a statement: “Since establishment Ossiam has maintained a responsible ethos in the investment strategies and funds we develop, as well as in our interaction with clients and partners and our views on the future of smart beta and exchange-traded funds. We are therefore very pleased to formalise our alignment with these values by joining Principles for Responsible Investment.”
Fiona Reynolds, PRI Managing Director, added: “Ossiam is a recognised leader in quantitative asset management and developing products that can be used in sustainable investment strategies. We are delighted that they have chosen to sign up to the PRI Principles.”
As of 8 June 2016 there are 1,531 members affiliated with PRI including 310 asset owners, 1,011 investment managers and 210 service providers.