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Environmental, social, and corporate governance – a fixed income game changer

Business Insight 2 months ago

There is however a need to be pragmatic in this area. It is possible, for instance, to make a sound case for investing in carbon-intensive companies.


13 Nov 2020
PREMIUM!
Environmental, social, and corporate governance – a fixed income game changer

File image for illustration: iStock

Momentum’s head of fixed income, Ian Scott, is sure that environmental, social, and corporate governance (ESG) is a “game changer for fixed income”. However, there is still a lot to learn about how to incorporate ESG considerations pragmatically into a fixed income portfolio. “Our credit process is where ESG will have the most relevance,” said Scott, who co-manages the Momentum Bond fund. “If you think about a credit process, we have to assess the fundamentals of a corporate or SOE (state-owned enterprise). Firstly, is it a good business? Secondly, does it have a good management team? And, thirdly, is it...

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