As investors increasingly recognise the risks and opportunities from the low carbon transition, they are incorporating a wider set of considerations into their decision making, including carbon, green revenues and environmental, social and governance (ESG) factors.
Amid global growth in fixed income ETFs, RMB bond index funds have shown rapid growth in the past three years. By the end of June 2020, there were 133 domestic bond index funds with a total value of ¥455.5 bn in China - 23 times greater than in 2018 - and 27 overseas-listed RMB bond ETFs with a total value of ¥53.6 bn, 99% of which comprised Chinese government bonds and policy bank bond ETFs.
As asset managers and owners tighten their grip on costs and self-indexing gains traction, index providers are working more with clients in areas such as ESG and risk analytics.
The outperformance of funds that take environmental, social and governance (ESG) issues more seriously than their peers has reinforced why investors might want to integrate these factors into portfolios via the type of tools that S&P Dow Jones Indices has developed.
For this Year of the Pig reflection, we look back at our forecast of whether China's ETF Connect was likely to open during 2019.
A quarter of all professionally managed assets incorporate environmental, social and governance (ESG) principles, including climate change, in their considerations. As demand for data grows, indices reducing carbon emissions risk are now more attractive.