Singapore
Singapore,
29 April 2008
For the first time fund managers in emerging markets will be rated based on their capacity to incorporate environmental, social and governance factors (ESG) into their investment decisions as part of a major new research initiative commissioned by the International Finance Corporation (IFC), the private sector branch of the World Bank Group.
To determine the ratings, Mercer, who have been appointed by the IFC to conduct the study, has commenced interviews with 50 managers based in the emerging markets of China, India, South Korea and Brazil. The research will also include a survey of over 200 managers globally, who invest in emerging markets.
Tim Gardener, global business leader of Mercer's investment consulting business said the cutting-edge research would bring a greater depth of understanding of how sustainable growth in these four countries will be.
"As demand for investment in emerging markets has grown, so too has the need for a better understanding of the environmental, social and governance forces at play in these markets and their impact on performance," he said.
The results of the interviews with managers on the ground in China, India, South Korea and Brazil will provide investors with an insight into how emerging markets are operating and the initiatives they demonstrate in regards to ESG.
Helga Birgden, Mercer's responsible investment leader, Asia Pacific, said, "The in-depth nature of this research will really bring color to the picture of what is happening in these markets and uncover the capacity for sustainable investment.
"We believe there are probably many managers and companies already engaging in sustainable practices, but not promoting themselves as such. A key aim of the study is to ensure these practices and managers are duly recognized," said Helga.
Berit Lindholdt Lauridsen of IFC said, "Through this research, IFC wants to raise asset owners’ and fund managers' awareness and understanding of sustainable investing, and aims to highlight current investors' demand for sustainable investing products.
"A joint IFC and the Economist Intelligence Unit survey shows that about 80 percent of asset owners who currently do not integrate ESG policies in their emerging market investments expect to do so over the next three years. The survey also indicates that it is difficult to find fund managers with the required capacity," said Berit.
The sustainable investing program of IFC has been working, for the past four years, on increasing the sustainability of investments in emerging markets. Through the program, IFC delivers technical and financial support to projects that help investors capture the potential for superior long-term returns in emerging markets using a sustainability approach.
Mercer has assembled a team of over 20 investment consultants and researchers, and will leverage its Global Investment Manager Database (Mercer GIMD™) in each of the emerging markets to conduct the research. The findings will be made publicly available late 2008.
About IFCIFC, a member of the World Bank Group, fosters
sustainable economic growth in developing countries by financing private
sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services to
businesses and governments. IFC's vision is that poor people have the
opportunity to escape poverty and improve their lives. In FY07, IFC
committed $8.2 billion and mobilized an additional $3.9 billion through
loan participations and structured finance for 299 investments in 69
developing countries. IFC also provided advisory services in 97
countries. |
About MercerMercer is a leading global provider of consulting, outsourcing and investment services. Mercer works with clients to solve their most complex benefit and human capital issues, designing and helping manage health, retirement and other benefits. It is a leader in benefit outsourcing. Mercer’s investment services include investment consulting and multi-manager investment management. Mercer's 18,000 employees are based in more than 40 countries. The company is a wholly owned subsidiary of Marsh & McLennan Companies, Inc., which lists its stock (ticker symbol: MMC) on the New York, Chicago and London stock exchanges.In 2004, Mercer's investment consulting business formed a specialist global Responsible Investment (RI) business unit dedicated to developing intellectual capital in this field. In this unit, Mercer works with investment fiduciaries around the world to implement RI programs and offers a range of services – from policy development to manager selection and monitoring. The eleven person team has staff in New York, Toronto, London, Tokyo and Melbourne.For more information, visit www.mercer.com. |
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