Money management executives are particularly excited about an emerging markets-related ESG opportunity. There has been an evolution in the impact opportunity set within emerging markets, said Simon Cooke, London-based emerging markets portfolio manager at Insight Investment, which had £213.8 billion ($257.8 billion) in fixed-income assets under management as of Dec. 31. Emerging markets impact-related bond issuance has grown over recent years, he said, to account for 30% of total corporate supply last year, up from 20% in 2021 and 10% in 2020. In 2019, that proportion was roughly 5%, Mr. Cooke said. That means there’s an opportunity set of more than $200 billion from issuers across 30 countries that specifically target social and environmental projects, “making your money do good rather than just (achieving) financial returns,” Mr. Cooke said. Including hard currency sovereigns, the opportunity set is more than $250 billion, he added. Emerging markets are particularly attractive, he added, with a “greenium” of about 10 basis points every year. “What this means is we think that, in emerging markets today … there’s an incredible opportunity to generate both financial returns and positive impact over the next three to five years, in a way that wasn’t there three to […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
