Deutsche Bank Wealth Management Adopts MSCI Ratings in ESG Expansion

By Dieter Holger

Deutsche Bank AG (DBK.XE) said late Monday that its wealth-management arm will now use environmental, social and governance ratings from index and research giant MSCI Inc. (MSCI) as part of an expansion of its ESG lineup.

The German bank said it would also launch new research, client materials and events around ESG.

"ESG comes up more and more often in our regular discussions with clients," said Fabrizio Campelli, global head of wealth management at Deutsche.

Institutional investors have flocked to values-based strategies like ESG in recent years. Sustainable investing accounted for 26% of professionally managed assets in the U.S. last year, up from 18% in 2014, according to the Global Sustainable Investment Alliance, a nonprofit.

But adoption among retail investors has been slower. ESG mutual and exchange-traded funds held just $161 billion of $22.1 trillion of fund assets in the U.S. last year, according to market intelligence firm Morningstar.

Still, wealth managers at Bank of America Corp. (BAC), Morgan Stanley (MS), and now Deutsche have ramped up their efforts to meet perceived demand.

"A new generation of clients and society as a whole are becoming increasingly aware of the responsibility that comes with wealth and the positive impact that ESG factors can have on returns," Mr. Campelli said.

Write to Dieter Holger at [e-mail]; @dieterholger

(END) Dow Jones Newswires

September 17, 2019 05:38 ET (09:38 GMT)

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