Investors have nudged their cash allocations higher, suggesting a slight increase in concerns that inflation and "taper tantrums" could topple a record rally in financial markets, BofA's March fund manager survey showed on Tuesday.
Investors have nudged their cash allocations higher, suggesting a slight increase in concerns that inflation and "taper tantrums" could topple a record rally in financial markets, BofA's March fund manager survey showed on Tuesday.
ESG-Backing Institutions’ Fave Allocation: Investment Grade Bonds
They’re the top asset in those sustainable portfolios, with 81% opting for them, survey says.
What do institutions devoted to sustainable investing prefer for their portfolios? Investment grade bonds.
Turns out that, in a survey of 80 midsized institutions, investment grade fixed income was used by 81% of environmental, social, and governance (ESG) adherents. Of course, they allocate capital to other asset classes, as well, but to a lesser degree. Those that use domestic equities amount to 73%, followed by non-domestic stocks at 69%.
For ESG-oriented institutions’ bond holdings, 72% were investment grade, which argues that the asset allocators don’t want to stray too far out on the risk curve. That allocation amounts to almost a quarter of total assets under management.
South Africa's 2021 budget did not focus enough on economic reforms, making a sustained rebound in its gross domestic product unlikely, S&P Global Ratings said on Tuesday.
By Reuters Staff
(Recasts, adds debt chief comments)
ROME, March 4 (Reuters) - Italy plans to top up its first green BTP bond after it drew robust interest from investors, the Treasury’s debt chief Davide Iacovoni told Reuters on Thursday.
The Treasury raised 8.5 billion euros ($10.2 billion) from the bond on Wednesday after receiving orders in excess of 80 billion euros on the back of the growing appeal of environmentally-friendly assets.
Foreign investors bought 73.7% of the bond, with more than 53% snapped up by funds. “The bond has entered the portfolios of fund managers who are already specialised in sustainable investments,” Iacovoni said.