Amundi's Fagan Says ESG Is Becoming Mainstream

The video discusses the launch of a new ESG fund endorsed by Cambridge and Oxford, focusing on replicating the MSCI All Country World Index while excluding fossil fuels. It highlights the fund's aim to address climate change risks and replace traditional equity exposure. The discussion covers the misconception of passive funds lacking active engagement, emphasizing the importance of active stewardship. The video also explores market competition, strategies for attracting institutions, and future developments in ESG products, including more granular exposures and thematic ESG ETFs.

What is the primary objective of the new passive tracking green fund launched by UK universities?

• To replicate the MSCI All Country World Index without fossil fuels

• To invest solely in fossil fuel companies

• To focus on high-risk investments

• To exclude all technology companies

How is ESG becoming a part of mainstream portfolios?

• By focusing only on technology stocks

• By replacing the core of traditional equity portfolios

• By excluding all types of investments

• By being a niche thematic investment

What is a common misconception about passive funds?

• They only invest in technology stocks

• They are more expensive than active funds

• They cannot engage actively with companies

• They have no impact on the market

What has driven the growth in passive ESG products?

• Decrease in fossil fuel prices

• Government regulations

• Demand and innovation

• Lack of interest from investors

What is one of the future development areas in ESG products?

• Exclusively investing in technology companies

• Reducing the number of available ESG products

• Granular exposures and thematic ESG ETFs

• More focus on fossil fuels

What is the significance of customized ESG solutions?

• They allow for a one-size-fits-all approach

• They cater to specific investor needs and objectives

• They are only available to large corporations

• They focus solely on reducing costs

What is expected to be the next big transition in ESG products?

• A decrease in ESG product offerings

• Fixed income ESG products

• A focus on fossil fuels

• Exclusively technology-focused funds