Understand emerging markets opportunities and the American Century advantage.
By Guillaume Mascotto - March 2019
We saw significant momentum in the ESG space during 2018. Asset managers launched new or repurposed strategies ranging from those designed to integrate environmental, social and governance issues more broadly into the investment process to screening strategies that exclude so-called “vice” industries (e.g., firearms, coal mining) and overweight “good” industries (e.g., renewable energy, clean tech) in client portfolios. We also noted a variety of new investment vehicles, such as ETFs and impact-related thematic products.
Globally, asset owners have increased their focus on allocating capital toward ESG-related investments. Growing concern for stranded fossil fuel assets and water stress generated particular interest in investment solutions that address climate change risks.
Issuers have also started placing more emphasis on ESG disclosure. They have stepped up organizational transparency around ESG-related risk management practices and business ethics controls to address growing investor concerns, especially after a series of scandals resulted in adverse impacts on market valuations and credit spreads.
Notes from the ESG Desk
There’s a lot of talk about ESG investing. However, few managers have focused on emerging markets—and that’s where we see a lot of potential.
By investing with the intention of helping to advance the Sustainable Development Goals, you can play a critical role in creating a more inclusive society.
Going green is no longer limited to recycling or buying energy-efficient appliances. With the rise of the green bond, environmental, social and governance (ESG) investing is now venturing into fixed income, helping fund projects with broader positive environmental impacts.
May 25, 2018
Combining both top-down and bottom-up inputs, the American Century Investments' ESG framework can be applied across investments strategies.
September 21, 2018
Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.
The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
FOR INSTITUTIONAL USE ONLY | NOT FOR PUBLIC USE