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
Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum.
Institutional investors have entered November with their largest pre-election equity allocation in two decades, according to new data.
The sovereign wealth fund remains cautious of the impact of high inflation as it announces a strong return in its latest update.
Australia is becoming increasingly recognised as an attractive investment opportunity against global counterparts, recent analysis has found.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
