Preqin, a global leader in alternative assets data, tools, and insights, announced today the launch of its ESG fund performance benchmarks.
These market-first benchmarks are designed to enable clients to assess environmental, social, and governance (ESG) fund performance within the broader private market context.
This latest offering from Preqin addresses the critical lack of standardized and comparable ESG fund performance data which has contributed to a rise in anti-ESG sentiment and criticism recently. In response, Preqin has developed benchmarks that help standardize performance analysis across the ESG spectrum, including SFDR, Impact, and Climate funds.
Preqin operates at the forefront of the alternative markets sector, providing comprehensive data, tools, and insights. The company is recognized for its in-depth data analysis capabilities which cover a wide array of private market asset classes such as private equity, venture capital, real estate, private debt, natural resources, and infrastructure.
The ESG fund performance benchmarks allow investment professionals to conduct thorough analyses and compare the performance of ESG-labelled funds with other ESG and non-ESG funds. This extensive coverage includes more than 1000 ESG funds and over 200 specific ESG fund performance benchmarks across various labels like ESG Integration, Impact, Climate, and SFDR Articles.
These benchmarks not only enhance the capability to benchmark ESG funds but also support fund managers and investors in articulating their performance outlook and ESG credentials confidently. They also equip advisors with the latest ESG market intelligence to inform their clients accurately about new market opportunities and challenges.
Recognized as a market leader by third parties, Preqin provides over 100,000 customizable alternatives benchmarks and maintains data accuracy through a dedicated research team and a variety of data sourcing channels. These channels include the Freedom of Information Act, public filings, and direct contributions from fund managers.
Preqin EVP, Head of ESG Solutions & Corporate Responsibility, Jaclyn Bouchard said, “At Preqin, we look to empower anyone who invests in, allocates to or advises on ESG in Alternatives. Through our benchmark offering, we aim to unleash the power of data to increase transparency around the performance of ESG funds to enable more opportunities for capital to flow to sustainable investments.”
Preqin SVP, Head of Benchmarks, Fabien Chen added, “With this latest launch, we hope to give practitioners another tool to help them to understand whether ESG funds outperform the market or their non-ESG peers. As we expand and innovate on our benchmark offerings, we will bring further transparency and objectivity to enhance decision making and accountability in the private markets.”
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