NS: Having liquidity screens, minimum market capitalisation requirements and caps on country exposures have proven to be great risk-mitigation tools.
Also, our ESG screening has helped remove companies from indices that could have been a problem when the Ukrainian war emerged.
FTA: Is now a good time to invest in ESG ETFs?
NS: We believe the market has turned decisively in favour of ESG. Investors increasingly feel they have an important role in making sure capital is allocated to companies that behave in a responsible manner.
Also, while a few years ago ESG was simply viewed through the lens of doing what is morally correct, today ESG investment is increasingly motivated by participating in a mega-trend that could deliver meaningful returns as they pivot towards the technologies that will be shaping the future of the world we live in.