The second part of the interview with Ricardo Manrique, director, derivatives strategy, London Stock Exchange Information Services, explores how the recent market turbulence has accelerated interest and demand for more reactive index strategies.
Can ESG capitalise on demand for risk management/defensive types of investments? Ricardo Manrique : As the markets became impacted by the pandemic, risk aversion became more prominent for investors globally. We saw an increase in interest in ESG and thematic strategies due to what appears to be an outperformance of some of the ESG strategies. For example, the FTSE All-World ex CW Climate Index has outperformed the FTSE All World Index by 3.7% since September of last year. It is fair to