Hedge Funds That Failed ESG Test Cut by $65 Billion Investor (1)

One of Northern Europe’s biggest hedge-fund clients has been cutting back on managers that aren’t keeping up with demands for environmental, social and governance allocations.

Reima Rytsola, who oversees about $65 billion as the chief investment officer at Varma Mutual Pension Insurance Co. in Helsinki, says it’s clear that the hedge-fund industry needs time to adapt to the new ESG landscape. But he also indicated that patience is running out with those who show little sign of improvement.

“We have dropped some managers that didn’t seem to have good intentions to improve their ESG approach and methodology,” Rytsola said ...