Increased demand for responsible investing in hedge funds, survey finds

Increasing investor demand for responsible investment is one of the biggest trends shaping the global asset management industry today. Investors are demanding portfolio solutions that, as well as minimising risks and maximising returns, also take social and environmental concerns into account.

Incorporating these environmental, social and governance factors into investment decisions is at the heart of responsible investing.

The Cayman Alternative Investment Summit, or CAIS, in partnership with the Alternative Investment Management Association (AIMA), released a report titled, “From Niche to Mainstream: Responsible Investment and Hedge Funds.”

The report, which is based on a survey of 80 asset managers with $550 billion in hedge fund assets under management (AUM), offers a first-of-its-kind look into how the hedge fund industry is approaching responsible investment.

“The hedge fund industry is constantly evolving in response to changing economic conditions and investor demands, and the growing adoption of responsible investment is the latest step in that evolution,” says Chris Duggan, Director of CAIS and VP of Community Development for Dart Enterprises.

CAIS is organized as a not-for-profit event, and all proceeds from the conference go to benefit philanthropic efforts both in Cayman and internationally. Dart Enterprises, the host for CAIS, is especially active in the local Cayman community and supports a number of non-profit endeavours across the islands.

With over $3 trillion in assets under management and connections to some of the most influential investors in the world, the hedge fund industry has an opportunity to influence the conversation on responsible investment.

“The discussion on this subject is only going to get louder as the responsible investment movement continues to grow,” says Duggan.

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