Responsible Resolutions: This is the latest article in a series from sustainable finance practitioners about their hopes for the New Year.
The decade-long rally in equities has seen low-cost, passive investment solutions deliver triple-digit returns which actively managed strategies have struggled to match.
It can be a no-brainer for investors. Apart from healthy returns and low fees, passive funds offer a simple, no-frills solution over strategies of increasing complexity and uncertain returns.
Last year, the volume of passively managed US equities surpassed their actively managed counterparts for the first time.
Now, major index providers have been dubbed “the biggest power brokers in the industry” by the likes of the Wall Street Journal.
But if the RI community had hoped that incumbent providers would use this clout to introduce even basic human rights standards within mainstream benchmarks, they would be disappointed.