There is so much money going to be made with this stuff.*
From Artemis:
Investor demand for environmental, social and governance (ESG) appropriate investment opportunities and asset classes is expected to become a key driver for the insurance-linked securities (ILS) market going forwards and a new fund launch from giant asset manager BlackRock only serves to reinforce this belief.
While there are still very few insurance-linked securities (ILS) or catastrophe bonds that are considered to be fully ESG aligned, this is expected to increase over time.
However, ILS and catastrophe bonds in particular, are seen as having inherent ESG related qualities.
They are vehicles for provision of disaster risk and recovery financing, are seen to protect society against the environmental impacts of weather and natural disaster events, and they are issued out of a highly regulated marketplace with strong governance already in-place.
All of which means that, as institutional investors increasingly look for ESG relevant asset classes, ILS and catastrophe bonds are set to take a share of global ESG allocator flows.
As we explained recently, the focus of ESG investors on ILS and cat bonds has already become a driver for issuance activity, according to Fermat Capital Management’s John Seo.
But, when it comes to how ESG flows may help to drive market issuance, a future driver could come from the multi-strategy investment fund world, as increasing numbers of traditional investment fund managers look to add ILS or catastrophe bonds to their ESG fund portfolios.
Enter BlackRock, the giant investment manager that has over $9 trillion in assets under management, as of Q1 2021.
BlackRock has a range of sustainable investment funds and ESG strategies, from equities through to ETF’s.
But the manager is also launching new ESG strategies and beginning to market them to potential investors, one of which is the BlackRock ESG Capital Allocation Trust, a closed-end fund strategy focused on equity and debt securities, at least 80% of which will be expected to meet specific environmental, social and governance (ESG) criteria.....
....MUCH MORE
*Yesterday, a different aspect:
"Get Ready For The SPAC Frenzy In Clean Energy"
