[MUSIC] What is your opinion on the regulatory development in the EU, related to sustainable finance, EU action plan, or sustainable finance? Shall the definition of sustainable activities be provided by the regulator? Yeah, so they're so the EU is like depending on your point of view a few years ahead of the United States in terms of their aggressiveness in regulating SG funds, and defining all these things. I do think that there has to be a sheriff, even though I personally personal big believer in free markets and etcetera, to accept that there needs to be sheriff in town to maintain order and to protect the little guy. And I think to their credit, that's what regulators in general are trying to do. So I don't think it's a bad thing, I think in general transparency is the best disinfectant. And if we can as a community increase the amount of information that, if companies can increase the amount of information they share with investors and professional money managers like us, we share more information with our clients and investors, we'll all be better off. I think we want to be, we try to be as transparent as possible with our investors, which is why we have certain rules like no fossil fuels for example. I think there are some people who might be surprised to learn that there is G funds own Exxon for example, as many do, so do your homework, but also incumbent upon the players in the market to be transparent about what they're doing? >> Yeah, it's great, really fascinating stuff. Let's see, Brad Merkel, can you comment on the effectiveness of negative screening versus positive screening in managing a large diversified portfolio, for example, a large pension fund. >> Yeah, so I don't I don't know, they've actually seen any statistical analysis of that compares negative to positive screening. Obviously, negative screening is easier to do, it's a bit more concrete, you know the activities that you want to prohibit it's a little less clear what activities you want to encourage. So a lot of these screened companies tend to be in defense, gambling, alcohol, tobacco obviously, so those are the big ones, and those have generally not been the highest return sectors in the market over the last call a decade or so. Notably, obviously technology almost never gets screened out, nor to a lot of consumer companies. So our experience has been that investors are really not sacrificed return in the negative screen world. I think again as I discussed earlier, it's an open question as to how much return you can gain from positive screens. >> We have just a few left here Chris so much interest, so much involvement in the space, it's really great to see. Yang Chen asks, would you say that the trend of increasing focus on ESG would actually accelerate outsourcing? >> So outsourcing of I guess, I'm not sure if the question relates to outsourcing of investment management, or outsourcing by individual companies. I guess I'll come in on both, I think it actually and related back to what was the second question on supply chains, which is that just because a company doesn't directly engage in activities, which may put them at PSG risk doesn't mean that they're not responsible for those risks. In other words, because Apple doesn't actually employ people that make the simple phones, doesn't absolve them from making sure those workers are not treated well. If that was the gist of the question, if the gist of the question was about outsourcing fund management, I think this is actually the SG in many ways is a godsend for active managers because it's an opportunity for active managers to leverage their knowledge about individual companies. And because, no matter how much information comes out and how much how many quantitative measures there are. SG is really a judgment call, it is not purely objective, and it's hard to see how it would be purely objective and able to be translated into a purely passive product. Obviously there are plenty of passive ETS out there, but plenty of passive ESGTS out there. But but I think they think human involvement is even more critical when it comes to making ESG judgments, and that's good for active management. [MUSIC]
