AMWatch

Virus spurs emerging market investors to seek returns in ESG

Emerging-market investors may have identified the assets that offer sustainable post-pandemic returns. Now they just need to find more of it. But investors need to stay alert: “There are a lot of solar tech companies for example, but if you look at some of them historically, they have been either frauds or haven’t met their cost of capital," a JPMorgan Asset Management specialist  says.

“There are a lot of solar tech companies for example, but if you look at some of them historically, they have been either frauds or haven’t met their cost of capital,” Claire Peck, an investment specialist in London at JPMorgan Asset Management says. “A business that doesn’t consider the environment is not sustainable, nor is a solar company that cannot meet its cost of capital.” | Photo: colourbox.com

The worst crisis since World War II is prompting some fund managers to rethink their strategies in a world with USD 13.7trn of sub-zero yielding debt and an increasing view that a V-shaped recovery is unlikely. Seeking opportunities in ESG, investments in countries and companies that are improving environmental, social and governance standards, are becoming crucial more than ever as investors navigate the pandemic-stoked market volatility.

“This is a crisis unlike anything we’ve seen and we cannot just go back to our old textbooks anymore that say ‘go buy the dip’,” said Thu Ha Chow, a money manager at Loomis Sayles Investment Asia Pte, who has been investing since Enron’s collapse. “The social and governance elements are going to be more important, but they can be harder to find in emerging markets.”

Read the whole article

Get 14 days free access.

No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

Nasdaq reports record year in Europe

In 2021, the number of new equity listings on the Nasdaq exchange in Copenhagen broke the old record set in 2007, and in Stockholm, the exchange recorded its highest-ever number of new listings. Nasdaq also had increasing trading volumes last year.

Further reading

Latest news

Jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch