fund manager: The resulting terminology soup unfortunately provides the perfect breeding ground for investor confusion as well as disappointment when a chosen investment fund doesn't behave as expected, according to Market Watch. Here are some of the key terms and investment strategies that fall under responsible investing This is short for Environmental, Social and Governance and is the current it phrase in responsible investing and, as such, is sprinkled liberally on investment products and managers, sometimes with seeming abandon. Investors, asset managers and advisers tend to liberally apply terms like ESG, even when it may not fully reflect the investment strategy or fund in question. ESG means that a fund or fund manager looks not just at the financial data, such as price-to-earnings ratios, earnings growth and cash on hand, but also at nonfinancial data usually related to environmental, social and governance factors to determine whether an investment has strong prospects for growth or might falter in the future. But if pending or current regulation or significant investor ostracization due to environmental or social factors made an industry unviable, for instance, it would be excluded from an ESG strategy based on that nonfinancial data. This doesn't require the divestment from or avoidance of specific sectors, including fossil fuels.
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