Incorporating environmental, social and corporate governance (ESG) factors improves outcomes for corporate bond investors, according to a report from JP Morgan Asset Management.The asset manager found that ESG scores could enhance portfolio outcomes via lower drawdowns, reduced portfolio volatility and, in some cases, marginally increased risk-adjusted returns.Although its study showed that using ESG scores improved gross portfolio returns for all categories of corporate bonds, this only held true for investment grade corporate debt once transaction costs were accounted for.The study involved back-testing portfolios of investment grade, high yield and emerging market debt, comparing their benchmarks with a portfolio constructed using MSCI ESG scores. The asset manager also set out to find out whether ESG scores differed from traditional agency credit ratings, and said the study suggested that MSCI scores were “additive” to traditional credit ratings.“The contingent liabilities related to ESG issues are not necessarily factored into rating agencies’ assigned ratings,” said Lovjit Thukral, vice president for global fixed income, currency and commodities (GFICC) at the asset manager and report co-author with Bhupinder Bahra, co-head of the quantitative research group for GFICC.According to Thukral and Bahra, the study showed that MSCI’s ‘E’, ‘S’, and ‘G’ scores were generally not related to one another or to credit agency ratings. In the investment grade segment, the governance score was negatively related to credit agency ratings.Another result of the study was that ESG benchmarks (of issuers covered by MSCI) had an inherent quality bias in terms of the performance metrics.In 2017, Hermes Investment Management found that there was a significant relationship between companies’ ESG credentials and their credit spreads. It recently turned its attention to ESG risks in sovereign bond markets, as did BlueBay Asset Management.Rating agencies have moved to more clearly demonstrate how ESG considerations feed into their credit analysis in response to pressure from investors.
RelatedPosts Super Eagles soar on FIFA ranking FIFA ranking: Nigeria moves up by two spots, now world 29th Femi Otedola gifts his daughters Ferrari Portofino + Photo Super Eagles forward, Ahmed Musa, and his wife, Juliet Ejue, have shared the first photo of their son, Isa Ahmed Musa.The 27-year-old footballer shared the photo of his adorable son on his social media page with a heartfelt message. The message reads: “Today is a special day for me as my son will be named. Isa Ahmed Musa. I pray that your name will only be called in places of honour. You will be a solution to your generation and the first amongst your peers. I love you so much.”Recall that there were reports that the footballer was arrested and questioned by the United Kingdom Police in 2017 for allegedly beating his ex-wife, Jamila, but was later released.However, he married Juliet a few weeks after divorcing his ex-wife Jamila, mother of his two children.Tags: Ahmed MusaChildbirthFamilyNew SonSuper Eagles
The new rules aim to restrict the levels of testosterone in female runners.They will apply to women in track events from 400m up to the mile and require that athletes have to keep their testosterone levels below a prescribed amount “for at least six months prior to competing”.So the delay means female athletes with high testosterone – of whom South African Semenya is the most notable – will not be allowed to run for six months from the date the rule changes come in.That would take them to 26 September – just one day before the 2019 World Athletics Championships begin in Doha.Semenya, and Athletics South Africa (ASA), are challenging the rules at the Court of Arbitration for Sport (CAS).IAAF Health and Science department director Stephane Bermon said the governing body recognised the five-month shift “could result in affected athletes having to sit out the bulk of the outdoor season leading up to the World Championships, including international competitions such as the Diamond League, which begin in May 2019”.The IAAF’s proposed rule would mean some female runners with naturally high testosterone levels would have to race against men or change events, unless they took medication to control their levels.IAAF President Sebastian Coe said Semenya and ASA had agreed on the delay as part of a deal to get the legal case settled as quickly as possible.“We have agreed not to enforce the regulations against any athlete until the contested regulations are upheld,” he added.“In exchange, they have agreed not to prolong the process. All athletes need this situation resolved as soon as possible.”In a statement, the IAAF added it “remains very confident of the legal, scientific and ethical bases for the regulations, and therefore fully expects the Court of Arbitration for Sport to reject these challenges”.ASA said it was “very pleased” with a decision that meant the changes were “effectively suspended pending the outcome of the appeal”.It says the rules will have a “discriminatory effect on female athletes like Semenya” and believes “the medical data relied upon by the IAAF is flawed”.Semenya, a two-time Olympic champion and three-time world champion, has previously been asked to undertake gender testing by athletics chiefs, but no results have officially been made public.“It is not fair. I just want to run naturally, the way I was born,” said the 27-year-old South African recently.Testosterone is a hormone that increases muscle mass, strength and haemoglobin, which affects endurance.Share this:FacebookRedditTwitterPrintPinterestEmailWhatsAppSkypeLinkedInTumblrPocketTelegram Caster Semenya World and Olympic 800m champion Caster Semenya’s battle to stop a rule change affecting female athletes with high testosterone levels could see her miss “the bulk” of the 2019 outdoor season.Athletics governing body the IAAF intended to bring in the new rules on 1 November but has put that back to 26 March 2019.It wants to wait for the outcome of a legal challenge from Semenya first.
UPDATE: Wellington lost to Fern Creek, Ky. in the Diamond Bracket Championship 5-3. Thus ends Wellington’s World Series run. The locals went 3-5 for the tournament. We will have a full story shortly.Sumner Newscow report â€” Wellington wins 7-4 over Plymouth at the 16-under girls softball World Series in Florida. Wellington plays Fern Creek at 1 p.m. in the championship game. The girls will have to beat Fern Creek twice for the diamond bracket championship. If Wellington wins the 1 p.m. game the second game is set for 3:30 p.m. today.Follow us on Twitter. Close Forgot password? Please put in your email: Send me my password! Close message Login This blog post All blog posts Subscribe to this blog post’s comments through… RSS Feed Subscribe via email Subscribe Subscribe to this blog’s comments through… RSS Feed Subscribe via email Subscribe Follow the discussion Comments Logging you in… Close Login to IntenseDebate Or create an account Username or Email: Password: Forgot login? Cancel Login Close WordPress.com Username or Email: Password: Lost your password? Cancel Login Dashboard | Edit profile | Logout Logged in as Admin Options Disable comments for this page Save Settings You are about to flag this comment as being inappropriate. Please explain why you are flagging this comment in the text box below and submit your report. The blog admin will be notified. Thank you for your input. There are no comments posted yet. Be the first one! Post a new comment Enter text right here! Comment as a Guest, or login: Login to IntenseDebate Login to WordPress.com Login to Twitter Go back Tweet this comment Connected as (Logout) Email (optional) Not displayed publicly. Name Email Website (optional) Displayed next to your comments. Not displayed publicly. If you have a website, link to it here. Posting anonymously. Tweet this comment Submit Comment Subscribe to None Replies All new comments Comments by IntenseDebate Enter text right here! Reply as a Guest, or login: Login to IntenseDebate Login to WordPress.com Login to Twitter Go back Tweet this comment Connected as (Logout) Email (optional) Not displayed publicly. Name Email Website (optional) Displayed next to your comments. Not displayed publicly. If you have a website, link to it here. Posting anonymously. Tweet this comment Cancel Submit Comment Subscribe to None Replies All new comments