The start to 2018 has seen a re-emergence of market volatility in the credit markets, rising incidence of idiosyncratic risks and an increased dispersion in investor appetite.
In such a market environment, the focus on environmental, social and governance (ESG) investing is a core part of the armoury in protecting portfolios against downside risk. While much of the focus on ESG investing to date has centred around ratings-based portfolio construction (both inclusion and exclusion), monitoring these risks should be a core component of any risk analysis. ESG may currently be a popular acronym for responsible investing, but the factors caught by this term have been part of active asset management analysis for years. MSCI: How does ESG impact the performa...
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