In our 2015 Responsible Investment and Stewardship report we provided analysis on how our ESG assessment has influenced default risk vs the credit rating agencies. While not quantifying the influence the analysis clearly showed that ESG factors were influencing our internal credit ratings with positive flow on impacts to the fund's performance.
The case study can be found at the following link:
This analysis will become a regular part of our RI Report going forward.
While our ESG assessment is only one part of a multi-factor risk assessment, we believe that the superior default and loss experience of the Global Credit Income Fund is at least in part attributable to the integration of ESG considerations into our research process. When taken together, the influence of ESG factors on our internal credit ratings and the default experience of the fund demonstrate the benefits of robust ESG integration.