MSCI Launches New ESG Corporate Bond Indices


Stockholm (NordSIP) – MSCI announced the launch of a new range of fixed income tools and solutions for institutional investors, including two new Fixed Income ESG indices, the MSCI USD IG ESG Universal Corporate Bond Index and the MSCI USD IG ESG Leaders Corporate Bond Index. The index provider also launched 12 fixed income factor indices on this occasion.

“We are pleased to bring next generation fixed income indexes to market,” Jana Haines, Head of Index Products, Americas at MSCI commented on this occasion. “Investors are increasingly demanding ESG integration across all asset classes and looking to Factors – such as Carry, Quality, Value, Size and Risk – to more precisely define how they can better identify, measure and manage risk and return in their portfolios.”

- Promotion -

The MSCI USD IG ESG Universal Corporate Bond Index selects its market exposure based on companies’ present and predicted ESG profile. The MSCI USD IG ESG Leaders Corporate Bond Index follows a similar approach. However, it adds a layer of industry exclusions for those companies with significant revenues from the sale of alcohol, gambling, tobacco, nuclear power and controversial weapons.

“Investors are facing market conditions driven by macroeconomic and geopolitical events, industry dynamics and the increased role of data and technology,” Peter Zangari, Global Head of Research and Product Development at MSCI, added. “Our fixed income solutions help investors assess and manage opportunity and risk, while responding to demand for improved transparency and operational efficiency. Building on our four decades of experience, this next generation of indexes brings increased clarity to the traditionally opaque fixed income asset class to support ESG and Factor based fixed income strategies.”

Image © Shutterstock

Partner message

In the midst of a global pandemic, Apple announced one of the corporate world’s most ambitious environmental blueprints – to reduce the climate impact of every Apple device to net zero by 2030. The plan involves cutting 75 per cent of the company’s existing carbon footprint, not only for its own business but also across the manufacturing supply chain and product life cycle.

Learn more

NordSIP Insights

Most read this week

Taxonomy: Sustainability Platform to the Rescue

With the new EU regulations on sustainable finance on the doorstep of the entire industry, asset managers are scrambling to sort through the various...