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Survey of Institutional Investors Reveals Urgent Need for Public Companies to Address Societal Issues to Build TrustThe Edelman (News - Alert) Trust Barometer Special Report: Institutional Investors reveals new criteria for evaluating investments as well as insights on what drives institutional investor trust in companies. The second annual special report finds that investment criteria are evolving to target areas beyond financial metrics, with a strong focus on corporate culture, Environmental, Social and Governance (ESG) investing, and companies' roles within broader society. "A new set of investment criteria is emerging as investors take into account longer-term considerations for what drives company valuation," said Lex Suvanto, Global Managing Director, Financial Communications & Capital Markets at Edelman. "Environmental and Social considerations are now as important as Governance, and the health of a company's corporate culture is becoming a meaningful investment factor. In addition, investors expect companies to take a stand on social issues that are important to maintaining a healthy business environment." The research surveyed more than 500 chief investment officers, portfolio managers, and buy-side analysts in five countries (U.S., Canada, UK, Germany and Japan), representing firms that collectively manage over $4.5 trillion in assets. The report is a supplement to the Edelman Trust Barometer launched annually in January at the World Economic Forum. Key highlights of the Edelman Trust Barometer Special Report: Institutional Investors include:
Investor ESG focus is now pervasive
Environmental and Social practices matter as much as Governance
Companies should expect all investors to be activists
Corporate culture is now an investment criterion
Nearly all investors believe companies have an urgent obligation
to take a stand on societal issues
The political climate is changing investment strategies
Management does not fully control the company's narrative
The reputation of a Board of Directors directly impacts investor
trust
Digital is utilized to inform the investor decision process
Having a long-term outlook is critical to trust
Investors believe the bear market is looming Methodology The Edelman Trust Barometer Special Report: Institutional Investors is based on an online quantitative survey of 500 institutional investors in the U.S., Canada, UK, Germany and Japan. Participants included portfolio managers (39 percent), chief investment officers (29 percent), financial analysts (26 percent), directors of research (4 percent) and ESG analysts (1 percent). Respondents represent firms which manage assets ranging from less than $500 million to more than $50 billion USD. Data Fieldwork was conducted by Edelman Intelligence between September 9 - October 22, 2018. About Edelman's Financial Communications Practice Edelman Financial Communications & Capital Markets is a boutique strategic consultancy with the reach and resources of a leading global communications marketing firm. We advise public and private companies on strategic and capital markets communications to help effectively position them with the financial community during transformative events as well as during the normal course of business. Clients choose to work with us because of our specialized and experienced financial communications team, our ability to provide the full range of Edelman's services (such as digital and social media, public affairs and employee engagement) as well as our ability to access Edelman's global network with more than 65 offices around the world. About Edelman Edelman is a leading global communications marketing firm that partners with many of the world's largest and emerging businesses and organizations, helping them evolve, promote and protect their brands and reputations. Among its many honors, the firm was awarded the Cannes Lions Grand Prix for PR, named one of 2018 "Agencies to Watch" by Advertising Age (News - Alert) and "Global Agency of the Year" by both the Holmes Report and PRWeek, and cited five times by Glassdoor as one of the "Best Places to Work." Edelman owns specialty firms Edelman Intelligence (research) and United Entertainment Group (entertainment, sports, lifestyle).
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