Reconsidering the banks sector

Banks have been held widely in the credit side of our sustainable strategies, and selectively on the equity side, for the entirety of their history, reflecting the role that products such as mortgages, current accounts and savings play in society.

The global financial crisis of 2008 was the low point for environmental, social and governance (ESG) performance of the sector, but since then it has improved with the most recent development being much better disclosure and policies around loan books and lending. There is a possibility that the macroeconomic environment is changing compared to recent years, with structurally higher inflation and interest rates. This, alongside more attractive financial characteristics for equity investors, has led us to increase our exposure in line with the changing output from our research process.

You can now read the full ’Sponsored Commentary’ at the link below

Supporting documents

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