GLOBAL- Global asset managers have invested over US$300bn in sustainable investment assets in emerging markets, Mercer and the International Finance Corporation report.
In their report - [ITAL]Gaining Ground: Integrating ESG factors into investment processes in emerging markets[/ITAL] - the firms said over $50bn of assets are specifically labelled as SRI with the rest using economic, social and governance factors in their core investment process.
Head of research at Mercer's responsible investment unit Danyelle Guyatt said: "The research found pockets of innovation, with many local fund managers in emerging markets having deeper knowledge and understanding of social issues than their global counterparts."
The report said local managers used social issues as an "important indicator of the quality of management and a source of insight into a company's outlook."
However, most of the assets come from global managers.
The report said: "Since major investors of global managers are asset owners based in developed markets, this indicates that asset owners based in developed markets who have taken an ESG integrated approach in their equity mandates are currently driving growth.
Here are key takeaways from our 2019 Asset Allocation Outlook on how we are positioning asset allocation portfolios in light of our outlook for the global economy and markets.
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