Bond managers add their voice to the ESG effort

Boom in advocates of ethical investment

There is a virtuous cycle to fixed income high-yield investing, and one that can be more meaningful when ESG is integrated into the investment process, writes Hannah Strasser, co-founder and managing director of SKY Harbor Capital Management.

Companies that implement long-term strategies to withstand pressures of changing demographics, market preferences and environmental conditions are ultimately those best positioned to manage financial risks and reduce their cost of capital. The virtuous part of the cycle is that companies that benefit from this type of investment approach are those that are actively reducing negative externalities associated with their operations, and are aiming to have an increasingly positive impact on society. BlackRock launches ESG range of EMD funds Identifying companies that have both good fin...