Proxy voting can be powerful, but also challenging, particularly when it comes to ESG. Invesco’s approach aims to increase the impact of active stewardship by leveraging the voting strength of our passive strategies – because every vote counts in the era of responsible investing.
Our lead article is accompanied by interviews with Matthew Tagliana, Head of ETF Product and Sales Strategy for EMEA at Invesco and Oğuzhan Karakaş, Associate Professor of Finance at the University of Cambridge’s Judge Business School.
The potential for incoherent ESG portfolios due to disagreements between equity and fixed income managers is quite high in multi-asset portfolios. We recommend multi-asset investors be mindful of potential pitfalls when it comes to achieving ESG targets.
As more and more investors incorporate ESG, the impact on risk and return must be made more transparent. Using a returns-based attribution framework, we find that a generic multi-factor index with ESG objectives delivers no significant exposure to ESG. Therefore, we propose a novel approach.
Investment managers have traditionally viewed taxation as something of an afterthought – but that is beginning to change. We describe three levers of tax alpha, discuss them in detail and show in a case study how tax-aware investing can improve investment returns for different portfolio setups.
For many US investors, low-yielding European and Japanese government bonds seem less than attractive. But when hedged into US dollars, they offer returns similar to those of US Treasuries and can meaningfully improve the risk-return profile of a US core bond portfolio.
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.
Data as at 30 April 2022, unless otherwise stated.
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