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1 Fund Avoided The Kraft Heinz Stock Bloodbath And It’s Because Of ESG Investing: NULG) - (NULV)

TedTed
in Fund Discussions
FYI: Kraft Heinz stock (KHC) was down more than 27% on Friday after the company took a $15 billion asset write down, cut its dividend, and disclosed a regulatory probe into its procurement and accounting practices. The stock was downgraded by five Wall Street analysts, too.

That’s a bad day.

Some big names have been caught up in the Kraft vortex, including Warren Buffett and private-equity firm 3G Capital. But one fund manager steered clear of this week’s Kraft Heinz bloodbath: Nuveen Asset Management. Nuveen avoided the decline for a unique reason: It shunned Kraft Heinz stock because the company has weak scores in ESG, the sustainable investing philosophy that looks at, and is short for, environmental, social, and governance metrics. Kraft Heinz isn’t the only high profile stock debacle Nuveen has managed to avoid. Nuveen’s ESG philosophy should give investors something to think about when assessing corporate risk in the future.

Nuveen offers a few exchanged traded funds for U.S. investors, including the NuShares ESG Large-Cap Growth Fund (NULG) and NuShares ESG Large-Cap Value Fund (NULV). In those funds, Nuveen only invests in companies that are in the upper half of a sector based on Nuveen’s ESG scoring.
Regards,
Ted
https://www.barrons.com/articles/esg-nuveen-asset-management-kraft-heinz-stock-51550862080?mod=djem_b_Weekly barrons_daily_newsletter

Comments

  • InvestorInvestor
    The damage is already done and like it always does, market might have reacted more violently than necessary. Selling a fund right now because it owns KHC is rearview investing. Instead of selling this could be a buying opportunity going forward.
  • rforno
    Looks like some reporter found a fund that didn't own Kraft and decided to write about it. Slow news day for them I guess...
  • Gary
    I bet Warren B's mouth is watering. Crying out loud and heart beating fast - but buying all the shares he can get his hands on. One way to make an elephant is to grow it. Time will tell!

    Gary
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