A new asset class for responsible investors
- Responsible investment has been growing steadily in recent years, reaching USD 22.9 trillion in 2016.
- Nonetheless, the offering of sustainable emerging market (EM) credit portfolios is limited, as investors remain sceptical that environmental, social and governance (ESG) considerations are compatible with emerging markets.
- ESG champions already exist amongst EM corporate issuers. EM sovereigns are also stepping up, especially in the fight against climate change.
- We believe that the number of ESG-mindful EM companies will continue to rise, as issuers respond to investors’ new requirements for sounder business practices and stricter local environmental and social regulations.
- This is creating opportunities to construct sustainable EM corporate bond portfolios, which should offer superior and more sustainable risk-adjusted investment returns and provide new, attractive and diversified opportunities for responsible investors.
Read more on UBP’s website
Read the white paper here