2022 saw the S&P 500’s worst start to the financial year since 1970 and those hoping Q3 would offer some respite were sorely disappointed. Thanks to, amongst others, skyrocketing inflation, the Russia/Ukraine war and the tightening of Fed policies.
Estimates of economic growth have also been declining in recent weeks as inflation remains high and economic indicators, including consumer spending and confidence, and the property market have all declined. Furthermore, debates around anti-ESG investing have accelerated as wealth managers and markets alike aim to navigate the murky waters of the investor landscape.
This latest Quarterly Trends Report examines four key trends, providing financial marketers with a comprehensive outline and key considerations as we head towards the end of the year.
Anti-ESG Movement in 18 states
So far this year, 18 US States have or are in the process of passing anti-ESG investing regulations. Additionally, Louisiana recently joined the ranks of Texas and West Virginia by divesting $800 million from BlackRock due to its ESG-heavy stance. Such a topic has become a heated debate among state treasurers, which is only set to be exacerbated by Midterm elections and global coverage of COP 27. The fallout has fund managers at a loss as to how to position themselvesin the light of such changes.
How tounderstand investor’s ESG appetites
The need to understand how to discuss sustainability with investors is well understood. The best approach to this, however, is not.We have recently noticed an increase in asset managers utilizing software and third-party tools to help them in this department. With a growing selection of tools to walk clients through the sustainable investing journey, wereview the success of these approachesto gauge clients ESG appetites.
Impacts of the SEC regulation ruling
With the grace period for implementing the SEC’s new marketing rule ending on November 4th, we face a fundamental shift regarding what ‘advertising’ means in the industry. We outline how the new ruling will impact digital advertising such as social media and email; and how marketers can use these considerations to benefit their future strategies.
Growth in alternative markets
Our previous trends reporthighlighted the growth ofalternative markets, and this quarter has shown no sign of slowing down.With the knowledge thatalternative investments are becoming more accessible to retail investors, we cover how markets make it easier for customers to access alternatives messaging.