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Fund Managers Use Controversial Bet to Beat Pack: ESG Regulation

July 5, 2022, 11:00 PM

This year’s best-performing ESG fund managers have relied heavily on some of the most carbon-intensive assets, ostensibly in keeping with regulations intended to steer capital toward a greener future.

The top-ranked ESG equity fund in the year through mid-June, which is managed by Eurizon Asset Management, gained almost 16%, compared with the average 20% decline for its European peers.

The fund manager behind the stellar performance, Francesco Sedati, readily admits that the contents of his portfolio -- fossil fuels and other commodities -- “are a bit controversial from an ESG point of view.” But he also points out ...