Invesco Fixed Income’s (IFI) Global Liquidity team believes that evaluating ESG criteria has led to better long-term risk-adjusted returns. As a result, the focus on ESG criteria enhances the team’s ability to deliver short duration portfolios focused on preservation of principal, high liquidity and yield.
Issuers in the short-duration space are increasingly more cognizant of their ESG impact and ratings. As such, issuers are active in looking to more positively affect these outcomes. We expect this trend to continue and to improve risk-adjusted return potential.
IFI has seamlessly integrated the evaluation of ESG criteria into its fundamental credit research process. Integrating ESG into research benefits our clients by providing them with an independent assessment of each investment’s suitability for responsible investment strategies.
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