POWERED BY MOMENTUM MEDIA
Insight introduces ESG rating for FI investors
Insight Investment has announced it has introduced its new environmental, social, governance (ESG) risk rating for fixed income investors and was applied to over 90% of companies in the global investment grade indices.
The firm said its new rating was a quantitative risk-analysis tool which provided afresh feed of data into Insight’s credit research hub, alongside non-ESG inputs, by aggregating and assessing external data against a set of 29 ESG risks.
According to Insight, this allowed analysts to base their decisions on direct engagement with companies which was a crucial part of ESG risk analysis.
Joshua Kendall, senior ESG analyst at Insight Investment, said that for many smaller issuers, particularly emerging market or high-yield companies, the availability of relevant non-financial data lagged information from larger issuers.
“We’ve responded by creating a series of ESG risk analysis tools to enhance our delivery of the research-led strategies our clients require,” he said.
“The rating is also effective in deepening our analysis of the nascent but fast-developing market for impact bonds, where issuance recently passed the US$1 trillion ($1.4 trillion) mark. This market is ripe with opportunities, yet large parts remain obscured by low levels of disclosure, creating challenges around comparability and concerns of ‘impact washing’.”
Bruce Murphy, director, Australia and New Zealand, Insight Investment, said: “Recent research has shown Australian’s appetite for impact investing has tripled over the past two years, a trend we see continuing.
“As impact investing becomes mainstream, the key for Australian investors is to ensure they are investing into areas that are genuinely making the positive social or environmental impacts they claim.”
Recommended for you
BlackRock has reduced its exposure to Australian and European equities in favour of emerging markets.
Equity markets have surged ahead of fundamentals as institutional investors fall behind, according to Ten Cap Alpha Plus.
Local investors are leading the region in plans to boost private market exposure, as demand grows for innovative fund structures, resilient investments, and a more selective approach to alternatives.
Research shows institutional investors are increasingly turning to private credit, but the APAC region’s relatively small market size remains a key constraint.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
