Investors are leaving out the waking causes after Donald Trump’s victory

Investors are turning away from waking causes after Donald Trump’s American election victory.

A report from investment bank Jefferies shows that fund managers are more willing to speak out against environmental, social and governance (ESG) and diversity, equity and inclusion (DEI) issues.

Analysts at the broker describe the trend as a “rush of wokeism” that has been accelerated by Trump’s re-election.

The shift was further cemented this week when Meta founder Mark Zuckerberg said he would ditch fact-checkers on Facebook and Instagram, saying they were “too politically biased.”

Christopher Wood, analyst at Jefferies, said: ‘It can rightly be described as the rush of wokeism.

“Since Donald Trump’s decisive election victory in November, we have noticed a change in behavior in our ongoing meetings with investors.

‘Fund managers are increasingly willing to say what they really think, even in the presence of colleagues, on politically charged issues such as environment, society and governance, or diversity, equality and inclusion.’

Zuckerberg and other tech founders are trying to bond with Trump — who was previously banned from Facebook — before he returns to the White House later this month. The president-elect and his Republican allies have criticized Meta for what they have called its censorship of right-wing views.

Wood added: “Meta will now likely no longer have to employ the so-called content moderators who, from a shareholder perspective, were a complete waste of money.”

Trump’s election was a shot in the arm for a trend that is emerging in the US and starting to manifest itself in Britain.

Some London-listed companies have started to distance themselves from ‘woke’ initiatives, amid backlash from investors. Last year, Unilever watered down its targets on plastic packaging, employee wages and diversity.

The £95bn giant, which owns brands including Dove and Hellmann’s, had previously put forward the idea that companies should do good in the world.

But investors, including top fund manager Terry Smith, accused the company of “losing the plot” and prioritizing the company’s credibility over shareholder returns.

Investors pulled £1.3 billion from ESG funds in the fourth quarter of last year, according to research from global fund network Calastone.

That followed an outflow of £261 million in the previous quarter and an inflow of almost £4.5 billion in the first half of the year.