American fund managers reach private agreements to strive to retain client mandates

According to Bloomberg, U.S. fund managers are devising private arrangements to prevent a significant outflow of clients focused on sustainability (ESG) from Europe's €6 trillion ($7 trillion) pension market. According to lawyers and investment managers, these arrangements include side letters and segregated accounts, allowing asset management firms to retain clients who might otherwise leave. European asset owners are closely examining the internal policies of U.S. managers and finding limited alignment on sustainability goals, prompting U.S. managers to offer alternative structures to ensure they do not lose business