{"id":3275,"date":"2018-12-20T05:00:34","date_gmt":"2018-12-20T05:00:34","guid":{"rendered":"https:\/\/www.greenpeace.org\/india\/?p=3275"},"modified":"2021-12-01T12:35:45","modified_gmt":"2021-12-01T12:35:45","slug":"institutional-investors-lose-billions-as-indian-coal-equities-underperform-market","status":"publish","type":"post","link":"https:\/\/www.greenpeace.org\/india\/en\/press\/3275\/institutional-investors-lose-billions-as-indian-coal-equities-underperform-market\/","title":{"rendered":"Institutional investors lose billions as Indian coal equities underperform market"},"content":{"rendered":"

Mumbai, December 20, 2018:<\/b> New analysis (1) shows that major Indian and international equity investors have seen their holdings in key Indian coal mining and coal-based power companies underperform the Bombay Stock Exchange Sensex by an average of ~10% per year since 2013, costing billions of dollars in foregone returns.<\/span><\/p>\n

Analysis by research firm Equitorials[1] shows that equity investments by 16 top institutional investors in 8 major listed companies (see notes for tabulated results and entities involved) in the coal mining and coal power sector have underperformed the benchmark BSE Sensex by over 10% p.a. Between December 2013 and October 2018. Most, if not all, of these funds are actively managed. These findings come even as the focus on the global financial sector\u2019s contribution to climate change through its support of fossil fuel industries is under the spotlight.<\/span><\/p>\n

India\u2019s public sector banks and non-banking finance corporations such as PFC are already facing scrutiny over their lending to poorly planned coal power projects, and the NPAs and stressed loans that have resulted. This analysis shows that banks are not the only ones to have been \u201cburnt by coal\u201d \u2013 leading mutual funds and international institutional investors have all seen miniscule returns from their coal equity holdings. Among the Indian institutional holdings analysed are public sector giants LIC, UTI and SBI Mutual Funds, as well as private sector names such as DSP, Reliance Nippon, ICICI Prudential, Aditya Birla Sun Life and HDFC. International institutions such as Blackrock, Goldman Sachs, Franklin Templeton, Fidelity, Vanguard, HSBC, Standard Life Aberdeen and Deutsche Bank were also looked at.<\/span><\/p>\n

Key findings:<\/b><\/p>\n