The $31 billion Australian superannuation fund hopes to have a carbon reduction overlay in place over its passive equities portfolio within six months.
As debates continue over how much is enough to green the world’s energy supply, transparent, diversified and liquid strategies may help enable investors play their part while also pursuing sustainable outcomes, says Jason Ye, head of strategy indices in APAC at S&P Dow Jones Indices (S&P DJI).
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.
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.
In eight months time, Chinese A-shares will make up 3.3% of the MSCI Emerging Markets Index. It is likely to spur capital flows and the development of A-share futures.
AsianInvestor reveals the winning custodians, index provider, law firm, auditor and compliance adviser in the latest batch of its annual Asset Management awards.
The region has among the most investing indices in the world. This is partly because of the undeveloped nature of local markets and isn't ideal, say investment industry figures.
Foreign investor interest in the world's third-biggest bond market is growing. But that interest is capped until China develops a reliable credit market and is included in benchmark indices.