Environmental, social and governance (ESG) analysis is explicitly integrated into our bottom up process across all our Fixed Income strategies. Our process is fundamentally driven and our issuer analysis encompasses a multitude of factors, including ESG.
Our assessment of an issuer’s ability to manage ESG successfully is integral to our determination of fair value (local currency) and fair spread (credit). Both governments and corporate management teams that can demonstrate strong ESG credentials are more likely to boost economic development and financial performance with lower volatility over time. Consequently, ESG factor analysis is integrated into our investment process, acting as a form of risk management and a source of alpha generation. We also consider it part of our fiduciary duty as stewards of our clients’ capital.
The ESG integration is overlaid by Ashmore's norms-based screening process, where investments that do not meet minimum standards are excluded from client portfolios. Ashmore fully supports the Oslo convention, which prohibits investment in companies manufacturing cluster munitions. Ashmore seeks to comply with applicable government authorities, and at a geographical level, screens across all investment themes for countries on the UN Security Council and EU/UK Sanctions and the US Office of Foreign Assets and Control lists.