EMEA fixed income investors bid on ESG for superior returns – ZAWYA

EMEA fixed income investors bid on ESG for superior returns – ZAWYA

Eighty percent of the fixed income investors in the Middle East, along with Europe and Africa, have sharply increased the adoption of ESG into their portfolio in 2019, up from 51 percent in 2018, according to a study on global fixed income investments.. Within the portfolios, EMEA investors have the highest proportion of investments covered by ESG considerations with 34 percent compared to 22 percent in North America and 19 percent in Asia-Pacific.. Some 54 percent of the respondents now believe ESG analysis can unlock hidden value within fixed income and 50 percent of investors that have incorporated ESG within their fixed income portfolios cite return enhancement as a key driver," said Invesco study.. Only 15 percent of EMEA investors expected ESG to be no more influential than it is currently, the lowest proportion of all respondents, said the study.. Three-quarters (75 percent) of investors reference social responsibility as the main driver to integrating ESG factors within portfolios and 67 percent cited stakeholder wishes as a key motivator behind their decision to integrate ESG, showing just how important this issue has become to asset owners and investors, he said.. The study, which surveyed fixed income investors across North America, EMEA