J.P. Morgan has launched a suite of global fixed income indices which incorporates environmental, social and governance (ESG) factors.
The JP Morgan ESG index suite was launched in collaboration with BlackRock in response to the growing demand from fixed income investors. Rebalanced monthly, the indices will be weighted systematically so issuers with the strongest ESG score have their weights increased. What has been driving the boom in passive ESGproduct launches? Furthermore, the indices will screen out controversial sectors such as thermal coal, tobacco, weapons and any violator of the United Nations Global Compact (UNGC) principles. Gloria Kim, head of the global index research at J.P. Morgan, added: "Resp...
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