All Korean articles
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Reports/Guides
ESG integration in fundamental strategies
When integrating ESG factors into investment analysis, they are examined alongside other valuation drivers. It has been more common to process ESG factors through qualitative analysis, but investors are increasingly also quantifying and integrating ESG factors into financial forecasting and company valuation models, in alignment with other financial factors.
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Reports/Guides
ESG integration in quantitative strategies
ESG integration has historically only been associated with fundamental strategies, but this perception is slowly changing as several quant managers are now integrating ESG factors into their valuation models and investment decisions.
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Reports/Guides
The impact of ESG integration on the investment process
Fully integrating ESG factors into a new or existing investment process takes time and often requires trial and error. Many variables are involved and approaches differ between organisation and even between teams.
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Reports/Guides
Monitoring managers' ESG integration
To review investment performance and managers’ integration practices, asset owners: organise periodic monitoring meetings with investment managers; ask them to complete questionnaires/regularly report; and/or use methods such as peer analysis, internal scoring systems and portfolio analytic tools.
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Reports/GuidesESG integration techniques for equity investing
ESG factors can be integrated throughout a listed equity portfolio, right across the active-to-passive spectrum.
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Reports/Guides
A practical guide to ESG integration for equity investing
To guide investors – both asset owners and investment managers – who are implementing ESG integration techniques in their investment decisions and processes, this report is the most comprehensive description to date of what ESG-integrated analysis is, and how it works in practice.
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Reports/Guides
ESG integration in sell-side equities research
Sell-side brokers integrate ESG information with traditional financial information – by leveraging their financial information systems, their access to company management, and the expertise of mainstream, sector-focused investment analysts – to improve research.
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Reports/Guides
ESG integration in passive and enhanced passive strategies
Some investors believe that as a manager cannot make active investment decisions in passive strategies, ESG factors cannot be integrated in passive investments as this may cause performance to deviate from the benchmark’s. Passive strategies can incorporate ESG factors, however.
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Reports/Guides
Considering ESG integration in manager selection
Selecting an investment manager that can act in accordance with an asset owner’s investment preferences requires thorough due diligence of the manager’s investment approach and performance, investment process, stock selection and portfolio construction decisions.
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Reports/Guides
ESG integration in smart beta strategies
In smart beta strategies, ESG factors and scores can be used as a weight in portfolio construction to create excess risk-adjusted returns, reduce downside risk and/or enhance portfolios’ ESG risk profile.
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Reports/Guides
Assessing external managers' approach to ESG integration
To integrate ESG considerations into their externally managed assets, asset owners (or their investment consultants) will assess external managers’ integration practices.
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Reports/Guides
Considering ESG integration in manager appointment
Once the most eligible asset manager is selected, asset owners can include ESG terms in the investment management agreement (IMA) to formalise their expectations.
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Reports/Guides
Fixed income investor guide
The Fixed income investor guide summarises the unique characteristics of fixed income with its various subcategories of issuers and instruments. It helps to explain why fixed income investors should take a bottom-up approach to RI while borrowing from the experiences of other asset classes, such as listed equities.
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Reports/Guides
Integrating ESG factors into issuer analysis
In fixed income, a key application for ESG information is to inform analysis of issuer creditworthiness. ESG issues, such as corruption or climate change, are potential risks to macro factors that may affect an issuer’s ability to repay its debt.
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Reports/Guides
Integrating ESG factors into sovereign issuer analysis
Governance factors such as institutional strength and political risks will have an impact on a sovereign’s ability and willingness to repay its debt on time. A country’s exposure and resilience to systemic environmental risks such as water scarcity will affect economic outputs, borrowing and its ability to attract foreign investment ...
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Reports/Guides
Integrating ESG factors into corporate issuer analysis
Analyses of governance factors such as remuneration and financial auditing are common among bond investors, but few systematically integrate a wide range of ESG factors into credit analysis.
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Reports/Guides
Integrating ESG factors into financial issuer and ABS analysis
In recent years, investors have become increasingly sensitive to the potential financial impacts of risk management failures, malpractice fines and banks’ ability to meet new regulatory standards.
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Reports/Guides
ESG screening in fixed income investing
Fixed income investors apply ESG filters or screens to their investment universe to control which issuers or securities are considered for investment. This is an effective way of ensuring their investments are aligned with their (client’s) ethical motivations and reduces reputational risks.
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Reports/Guides
Engaging issuers on ESG issues
Debt and equity holders both stand to benefit financially from successful engagements, as ESG-related risks are mitigated and opportunities maximised.
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Reports/Guides
Themed fixed income investing
Investment products such as green bonds are seen by many as a way of addressing ESG risks such as climate change and water scarcity.
