Multi Asset Boutique

Emerging markets: no (r)ESG, no fun

White Paper
Emerging Markets Sustainable Investing

To be ready for take-off in emerging markets, a typical pension fund’s cruising altitude is up to 20% of assets invested there – provided these are managed in a sustainable manner to mitigate risks while improving returns. Add to that the fun factor of active management.

Our research shows that investing in accordance with ESG principles improves annual returns from emerging markets by 4.1 percentage points in unconstrained portfolios versus an improvement of 2.1 percentage points in global markets. We consider emerging-market equities and hard-currency bonds strategic investments, alongside more traditional benchmark components such as developed-market equities and bonds as well as cash.

 



Multi Asset Boutique
2020-03-10-ma-mu_teaser
Market Update
COVID-19

Virus beats retreat in China, infects more people elsewhere

The first-time visit of Chinese President Xi Jinping to virus-hit Wuhan raises hopes that the outbreak is now mostly under control in Covid-19’s country of origin. Yet elsewhere, the respiratory disease has started to hamper everyday life and the economy. Should we see signs of a turning point, we might reverse our recent risk-off stance.

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