Institutional Asset Manager Newsletter 06.06.25

Anti-anti ESG backlash kicks off

Gill Wadsworth writes that investor appetite for sustainable investing is returning, quoting the BNP Paribas’ ESG Survey 2025, which found that there was “unwavering commitment to ESG objectives”.
Almost nine out of 10 (87 per cent) interviewed said their ESG and sustainability objectives remained unchanged, while 84 per cent believe the pace of progress of sustainability is either going to continue or accelerate between now and 2030.
Further, 85 per cent of respondents said they integrated sustainability-related criteria into their investment decisions, with 59 per cent performing thematic investment.
Wadsworth quotes Chris Iggo, CIO of AXA IM Core, AXA Investment Managers, who concedes that since the re-election of Donald Trump as US President, geopolitical dynamics and changing attitudes towards sustainability have influenced investor sentiment. However, he says corporates and individuals “must focus on reality over rhetoric”.
Iggo argues that Trump’s attempts to favour fossil fuels over renewable energy sources will likely be ignored globally.
“Trump’s “drill, baby, drill” mantra may face practical limitations, as the current level of oil prices mean increased production may not be economically viable for many oil companies,” he says.
We turned our attention east this week, talking to Japan’s largest asset management group, SuMi Trust, about their Sakigake fund. The word means ‘pioneer’, and the fund launched in 2013 and focuses on Japanese companies that benefit from ongoing structural change in Japan such as an ageing population, inbound tourism booming and increasing the demands for semiconductors.
The fund’s founder and portfolio manager, Katsunori Ogawa, explains that there are now so many foreign visitors to Japan that this has been added to the portfolio’s basket of structural trends with exposure to inbound tourism and retail trade.
We also bring you our latest Off the Record podcast from our sister title, ETF Express. This outing features US law firm Seward & Kissel’s Peter Shea and Paul Miller, who detail the potential of adding ETFs as a share class in the US. Listen here.
I will be chairing some of the ETF panels at IMPower Fund Forum in June. For a 10 per cent discount to attend, use this link and code: FKN3972ETFX. I hope to see you there.

Beverly Chandler, Managing Editor, Institutional Asset Manager
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