ESG & Multi Asset – A framework

Environmental, Social and Governance (ESG) issues are reaching a tipping point in the asset management industry, moving from a topic of discussion and consideration to the core of both client and investment thinking.
However, defining, quantifying and including ESG within an investment framework can present challenges.
In this paper, the Multi Asset team provide a framework for how ESG should fit into investment management - and specifically its role in multi-asset and macro investment management.
We compare ESG integration with sustainable and impact investing - and say how ESG fits into the Global Targeted Returns investment process.
Investment risks
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The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. The Invesco Global Targeted Returns Strategy may invest in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events. The strategy uses derivatives (complex instruments) for investment purposes, which may result in a portfolio being significantly leveraged and may result in large fluctuations in value. The strategy may hold debt instruments which are of lower credit quality which may result in large fluctuations in value.As a portion of the strategy may be exposed to less developed countries, you should be prepared to accept large fluctuations in value.
Important information
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Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals, they are subject to change without notice and are not to be construed as investment advice.
This information is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.