The US bank has launched a suite of global fixed income indices featuring ESG factors in collaboration with the investment management firm. The move comes in response to increased demand from fixed income investors. “Global investors are increasingly looking for more diversified products and services that can help them manage their portfolios,” said John Mack, CEO of Morgan Stanley. The indices will also screen out sectors including thermal coal, tobacco, weapons and violators of the United Nations Global Compact principles.
The US bank has launched a suite of global fixed income indices featuring ESG factors in collaboration with the investment management firm. The move comes in response to increased demand from fixed income investors. The indices will be weighted systematically and rebalanced on a monthly basis to ensure that issuers with the best ESG ratings have increased weights. The indices will also screen out sectors including thermal coal, tobacco, weapons and violators of the United Nations Global Compact principles.