CFA Institute Exam ESG-Investing Topic 6 Question 6 Discussion

Actual exam question for CFA Institute's ESG-Investing exam

Question #: 6
Topic #: 6

Are the following statements relating to investor engagement accurate?

Statement 1: Investors need to frame the engagement topic into a broader discussion around strategy and long-term financial performance with the management team.

Statement 2: Active investment houses are working to ensure that their portfolio managers can deliver stewardship alongside their regular monitoring of investee companies.

ANo, only Statement 1 is accurate

BNo, only Statement 2 is accurate

CYes, both statements are accurate

Show Suggested Answer

Suggested Answer: C

Both statements are accurate. Effective engagement with companies often requires framing the discussion around strategy and long-term performance. Active investment houses are also focusing on integrating stewardship activities with ongoing portfolio management. (ESGTextBook[PallasCatFin], Chapter 6, Page 285)

by Yoko at Nov 17, 2024, 03:53 AM

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Anika

17 days ago

I agree with Bettina, both statements make sense.

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Melinda

19 days ago

I agree with Statement 1. It's crucial for investors to frame the engagement in a broader context to have a meaningful discussion with management.

upvoted 0 times

Yvonne

11 days ago

User 1: I agree with Statement 1. It's crucial for investors to frame the engagement in a broader context to have a meaningful discussion with management.

upvoted 0 times

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Marica

20 days ago

I disagree, only Statement 1 is accurate.

upvoted 0 times

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Bettina

22 days ago

I think both statements are accurate.

upvoted 0 times

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