On May 18, 2020 Investment & Pensions Europe reported on the Invesco Global Fixed Income Study 2020, that documents social responsibility as a primary driver of fixed income integration.
“Social responsibility is the most popular factor motivating fixed income investors to integrate environmental, social and governance (ESG) considerations, according to a survey by Invesco.
Investors interviewed for the asset manager’s third annual global fixed income study were given a range of motivating factors to choose from, with 75% picking social responsibility, 67% ‘stakeholder wishes’, and 60% saying they were motivated by a desire to align with beneficiary beliefs.
Half of investors that have incorporated ESG factors within their fixed income portfolios cited return enhancement as a key driver, with Invesco highlighting this figure as a reflection of a change in investor attitudes about ESG.
‘Across all regions, very few investors report that integrating ESG has hindered returns, and in the case of EMEA, a majority (52%) have said that integrating ESG has improved them,’ said Nick Tolchard, head of EMEA for fixed income at Invesco.”
According to Invesco, the third annual study is “based on in-depth interviews with 159 CIOs and asset owners that are together responsible for the fixed income components of portfolios totalling US$20 trillion in AUM.”
You may read the article on the Investment & Pensions Europe internet site.
You can download the full study from the Invesco internet site.