Bell AM exits Facebook exposure
Bell Asset Management has exited its exposure to Facebook as the firm is failing to act on its environmental, social and governance (ESG) failings.
In a webinar, chief investment officer, Ned Bell, said the firm had sold the exposure to the social media giant in its Global Equities fund after having it on its watch list for some time.
The firm had made headlines in recent weeks after a whistleblower, Francis Haugen, highlighted widespread problems at the firm in acting on hate speech, under-resourced safety teams and online disinformation.
It was also coming under ever-growing scrutiny from the US regulator for its competition practices, anti-trust action and privacy legislation and, this week, rebranded its company brand name would be changing to Meta.
Bell said: “It is no secret that Facebook has had ESG issues for some time. From our perspective, it has been on our watch list for the last two years. We got to the point where they are not doing enough and what they are doing is for show rather than substance.
“It’s about looking for progression and their willingness to change and we are not seeing that from Facebook. They are unwilling to take on criticism and improve the outcome.
“I think it will have an impact on its earnings as these issues won’t go away anytime soon.”
Despite the media complaints, shares in Facebook had risen 16% over the past year to 28 October, 2021. However, they were down 8% over one month compared to a rise of 4.5% by the S&P 500.
However, Andrew Macken, chief investment officer at Montaka Global Investments, said he had retained his exposure in the Global Long Only and Global Extension fund as he separated the firm’s societal problems from its business case, which was “drastically compelling”. He also foresaw strong future growth for its e-commerce and virtual reality businesses.
AUTHOR
Laura Dew
Recommended for you
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
Fund managers are entering 2025 with the most bullish sentiment since August 2021 and record high allocations to US equities, thanks to the incoming Trump administration.
