Investors are increasingly taking environmental, social and governance concerns into account when making investment decisions to improve returns. But there is still a gulf between investors’ expectations and managers’ actions, particularly in the alternatives sector.

A survey by alternative investment manager LGT Capital Partners and Mercer, the world's largest investment consultant, found that although institutional investors expect alternative investment fund managers to consider ESG concerns when making investment decisions, 65% of respondents said that most of the managers they consider investing with fail to do so.