Accounting for climate risk in sovereign bond portfolios: FTSE Climate Risk-Adjusted World Government Bond Index [Climate WGBI]
The global sovereign debt market is one of the largest asset classes in the world, yet fixed income markets have typically lagged other asset classes in relation to ESG integration activities. Sovereign debt investors are exposed to a range of climate change risks that are typically not well understood or incorporated in the investment process. Part of the challenge has been the lack of sustainable investment products and viable climate data.
The FTSE Climate Risk-Adjusted World Government Bond Index (Climate WGBI) offers investors a solution that they can credibly implement. It measures the performance of fixed rate, local currency, investment grade sovereign bonds incorporating a tilting methodology that adjusts index weights according to each countries’ relative exposure to climate risk, with respect to resilience and preparedness to the risks of climate change.
2019 Smart Beta Survey Results - Live Studio Panel Discussion
With representatives from Merseyside Pension Fund, Ohio Public Employees Retirement System, Legal & General Investment Management and J.P. Morgan Asset Management.
Rolf Agather, Managing Director Research, FTSE Russell was joined by a select panel of investment experts as they examined some of the key findings from the FTSE Russell 2019 Smart Beta survey. This year the panel also discussed the results from FTSE Russell’s special 'Smart Sustainability' report, which looks at the impact of ESG on Smart beta.
Climate change poses clear and material risks to real estate assets with the potential to impact return profiles. Listed real estate, has historically lacked appropriate tools to allow investors to assess their exposure to climate risk and to integrate it effectively in their investment strategies. Find out more by watching this 2 minute animation
FTSE Russell webcast channel
Henry Odogwu, managing director, head of asset owner group Europe, FTSE Russell highlights key investment trends we have seen within the asset owner community in Europe. He also discusses some of the key challenges faced in an ever changing financial landscape.
Experts from the field talk about the trends from 2017 and discuss the outlook for 2018.
Senior members of the global research team discuss the latest perspective on the US small cap market.
Mark Makepeace, CEO, FTSE Russell looks back to 1992 when the FTSE 250 Index was launched and reflects on the role of FTSE Russell in UK capital markets and the growth of indexing.