ESG momentum in regional equity markets

New research from HSBC Asset Management investigates the use of ESG metrics for asset allocation decisions.

They analyse a basic active allocation strategy within regional equity markets, assessing the usefulness of ESG information via two dimensions: the impact on active returns and the predictability of future ESG scores. Their results suggest tilting portfolios on the basis of ESG information can enhance both portfolio returns and future portfolio ESG scores.

By Yuanfang Ma and Nicholas McLoughlin of HSBC Global Asset Management.

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