Tuesday, September 16, 2025
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

ESG Fixed-Income Exposure: Index Providers Respond to Asset Manager Demand

by Index Investing News
December 1, 2022
in Investing
Reading Time: 4 mins read
A A
0
Home Investing
Share on FacebookShare on Twitter


What does the latest Index Industry Association (IIA) global membership survey reveal about current trends in indexes and benchmarks?

Chief among the key data points is that the rapid expansion of environmental, social, and governance (ESG) indexes continues to gain momentum and diversify across asset classes.

The 2022 survey found the number of ESG indexes grew by 55%, with fixed-income–focused ESG indexes and benchmarks taking the lead in driving that growth.

The IIA has queried its members for the last six years to better understand how the landscape of indexes and benchmarks is evolving. Our annual global benchmark surveys gather member data about the indexes administered across identified asset classes and geographies — global, the Americas, Europe, and Asia. IIA members now administer over three million indexes, with equity indexes comprising 76% of the global total. With only about 11,000 global exchange traded products (ETPs), benchmarking is still the primary use case of indexes today.

The IIA’s most recent global asset managers report revealed increased demand for ESG fixed-income indexes and index providers have responded. The number of ESG fixed-income indexes has increased 95.8% and for the first time surpassed the number of ESG equity indexes, despite the latter growing by 24.2%. There are now more than 50,000 ESG benchmarks worldwide.


Growth of Global ESG Indexes


Among the various index categories, global ESG fixed-income grew the fastest, expanding by 122.5%. European fixed-income ESG saw the second largest percentage increase, at 92.5%. This spike tracks with findings from our previous report: Asset managers indicated that fixed income is now the fastest-growing ESG asset class. Indeed, 76% of asset managers implemented ESG criteria within fixed income this year, up from 42% in last year’s survey. This has been an ongoing trend in recent years. As investors gain access to new and better data, there is a greater push to define ESG in fixed income.

The growth rate of fixed-income indexes outpaced that of their equity counterparts for the third straight year, increasing by 4.5% compared to 4.3%. Within the non-ESG fixed-income category, municipal bond indexes grew by 10.9%, while the distribution across other categories remained stable.


Growth of Global Fixed-Income and Equity Indexes

Chart showing Growth of Global Fixed-Income and Equity Indexes in 2022

Why is all this important to investors? The research and development that goes into benchmarks and indexes eventually find their way back to the end investor. This year’s results highlight a chain reaction: With better ESG data, index providers create better benchmarks to track the market. This gives asset managers the tools to create better investable products. In turn, investors have more confidence that their investments are meeting their expectations.

Climate Finance Professional Learning course banner

Our findings also revealed a larger misperception about equity indexes. Contrary to popular belief, the Americas does not dominate the total number of equity indexes. The region actually has the smallest percentage of equity indexes across the three geographies surveyed. But our survey does show that the Americas is leading they way in creating new fixed-income indexes. The market has the largest percentage of fixed-income indexes, with more securitized benchmarks and high-yield and municipal bond indexes than all the other regions.

This development notwithstanding, the distribution of indexes across regions has remained stable and consistent over the last several years.

Whether these trends gather increased momentum or start to tail off will be something we will be watching in the year ahead.

If you liked this post, don’t forget to subscribe to the Enterprising Investor


All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the author’s employer.

Image credit: ©Getty Images/ champc


Professional Learning for CFA Institute Members

CFA Institute members are empowered to self-determine and self-report professional learning (PL) credits earned, including content on Enterprising Investor. Members can record credits easily using their online PL tracker.

Rick Redding, CFA

Rick Redding, CFA, is the chief executive officer at Index Industry Association (IIA), the first-ever trade group for independent index providers globally. Prior to his role with IIA, Redding served as managing director and in various senior positions guiding product innovation at CME Group.



Source link

Tags: AssetDemandESGExposureFixedIncomeindexmanagerprovidersrespond
Previous Post

Private hiring increased by just 127,000 jobs in November, well below estimate, ADP reports

Next Post

New Fortress: Valuation May Get Reset Shortly (NASDAQ:NFE)

Related Posts

From Inefficiency to Alpha: Europe’s Lower Mid-Market Opportunity 

From Inefficiency to Alpha: Europe’s Lower Mid-Market Opportunity 

by Samuel Duncombe, CFA, CAIA
September 15, 2025
0

Personal credit score in Europe’s decrease mid-market provides one thing more and more uncommon: structural inefficiency that favors buyers. Whereas...

Book Review: Rethinking Investing: A Very Short Guide to Very Long-Term Investing

Book Review: Rethinking Investing: A Very Short Guide to Very Long-Term Investing

by Martin Fridson, CFA
September 11, 2025
0

Rethinking Investing: A Very Brief Information to Very Lengthy-Time period Investing. 2025. Charles D. Ellis. John Wiley & Sons, Inc....

Abraham Lincoln’s Playbook: A Model for Passive Investment Strategy

Abraham Lincoln’s Playbook: A Model for Passive Investment Strategy

by Jacob P. Asplundh, CFP
September 10, 2025
0

Abraham Lincoln, a lawyer and the sixteenth president of america, is an oft-idealized and extremely quoted chief with good cause....

10 Cheapest Dividend Aristocrats Now

10 Cheapest Dividend Aristocrats Now

by Robert Ciura
September 10, 2025
0

Revealed on September tenth, 2025 by Bob Ciura Earnings traders are possible conversant in the Dividend Aristocrats, that are among...

10 Least expensive Dividend Aristocrats Now

10 Least expensive Dividend Aristocrats Now

by Index Investing News
September 15, 2025
0

Revealed on September tenth, 2025 by Bob Ciura Earnings patrons are seemingly conversant within the Dividend Aristocrats, which might be...

10 Overvalued Stocks To Avoid Now

10 Overvalued Stocks To Avoid Now

by Robert Ciura
September 9, 2025
0

Revealed on September ninth, 2025 by Bob Ciura The S&P 500 is overvalued. The picture under reveals the long-term pattern...

Next Post
New Fortress: Valuation May Get Reset Shortly (NASDAQ:NFE)

New Fortress: Valuation May Get Reset Shortly (NASDAQ:NFE)

Israeli co Nectin Therapeutics raises m

Israeli co Nectin Therapeutics raises $25m

Politics And The Markets 09/16/25

Politics And The Markets 09/16/25

September 16, 2025
RBI issues guidelines for payment aggregators, licence now mandatory

RBI issues guidelines for payment aggregators, licence now mandatory

September 16, 2025
Monday Night Football: How to Watch Buccaneers vs. Texans, Chargers vs. Raiders Tonight

Monday Night Football: How to Watch Buccaneers vs. Texans, Chargers vs. Raiders Tonight

September 16, 2025
5 Ways Soaking Almonds Could Make Them Healthier

5 Ways Soaking Almonds Could Make Them Healthier

September 16, 2025
Trump says US struck another Venezuelan drug vessel, killing three | News

Trump says US struck another Venezuelan drug vessel, killing three | News

September 15, 2025
How to install a smart light switch or dimmer

How to install a smart light switch or dimmer

September 15, 2025
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

Politics And The Markets 09/16/25

RBI issues guidelines for payment aggregators, licence now mandatory

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In