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Emerging Markets Debt: the Evolving Argument for ESG

In our study, we observed a positive benefit from emphasizing both issuers with higher ESG scores and improving ESG scores.
05 December 2023
    Articles
    Download the full reportPDF, 2.32MB

    Introduction

    Based on a recent quantitative study, we found that an active ESG overlay to the Emerging Markets Debt (EMD) traditional index can add value to risk-adjusted performance.

    This research was an update to an initial study that we published in 2020, where we examined the risk and return dynamics of a series of back-tested, index-based EMD portfolios – each incorporating different layers of ESG factors. Our initial paper covered the period from 31 December 2015 to 30 November 2020.

    Read the full report to know more.

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    Authors

    • Maria-Laura Hartpence
      Maria-Laura Hartpence Head of Fixed Income, Quantitative Research
    • Qiao Mu
      Qiao Mu Financial Engineer, Fixed Income Quantitative Research
    • Luther Bryan Carter
      Luther Bryan Carter Head of Global Emerging Markets Debt (EMD)
    • Amanda La Marca
      Amanda La Marca Senior Investment Specialist Emerging Markets Debt
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