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Paulin to Citywire: ESG Investing Demands ‘Active Pursuit’

In the News ESG Investing Active Investing
Engineers walking among solar panels.

Pinning hope on “ESG hot dots” and simply layering on third-party ratings and screens are not how Touchstone Investments approaches environmental, social and governance investing. Tim Paulin, senior vice president of investment research and product management, recently shared that assertion and more on CitywireUSA.com.

“Touchstone focuses its efforts on asset managers that can evidence long histories of integrating ESG factors into their investment processes,” said Paulin, “and active engagement with companies to drive improvements in their ESG standards.”

Among his observations:

  • “While many asset managers are anxiously raising their hands to say, ‘we can do that,’ the reality is that managers often lack evidence that they can effectively integrate ESG criteria while both delivering alpha to investors and engaging companies to improve performance.”
  • “We should be demanding of these managers, ‘show me your record for accounts integrating ESG.’ There are relatively few managers and strategies that can offer professional buyers such evidence.”
  • “ESG investing is, by its nature, an active pursuit.” Given that many companies already rate highly on ESG metrics, the opportunity for making ESG laggards better may hold greater potential. 
  • Touchstone believes corporate engagement accelerates ESG improvement. There are, however, “relatively few asset managers with the clout, expertise and resources to aid in that process.”

Download ESG Investing Demands Active Pursuit (PDF)

This article is for informational purposes only and should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation to buy, sell or hold any security. There is no guarantee that the information is complete or timely. Past performance is no guarantee of future results. Investing in an index is not possible. Investing involves risk, including the possible loss of principal and fluctuation of value. Please visit touchstoneinvestments.com for performance information current to the most recent month-end.

Please consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus and the summary prospectus contain this and other information about the Fund. To obtain a prospectus or a summary prospectus, contact your financial advisor or download and/or request one on the resources section or call Touchstone at 800-638-8194. Please read the prospectus and/or summary prospectus carefully before investing.

Touchstone Funds are distributed by Touchstone Securities, Inc.*
*A registered broker-dealer and member FINRA/SIPC.

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