Indexes incorporating ESG criteria have contributed to a surge in Asia and emerging equity markets in recent months and, in fact, have led similar broad market indexes in 2021 year-to-date, according to new data from global index provider FTSE Russell. And, amid this surge, FTSE Russell has partnered with the Singapore Exchange (SGX) to develop indexes for SGX's derivatives based on these markets for investors.
ESG-oriented versions of the FTSE Emerging, FTSE Emerging Asia and FTSE Asia ex-Japan Indexes have outperformed their parent indexes in January-to-date, with the FTSE Emerging Asia-ESG Index returning nearly 13%. This follows a fourth quarter in which the FTSE Emerging Asia Index rose 26.5%.
Helena Fung, head of sustainable investment, APAC, FTSE Russell:
"As sustainable investment considerations become increasingly central to investment decisions and asset allocation, investors have a growing need for solutions and tools that enable performance management as well as diversification, while helping to meet sustainable investment goals.”
Michael Syn, head of equities, Singapore Exchange:
“We are excited to offer risk-management solutions for sustainability investment through our SGX FIRST initiative to drive meaningful change across the world’s financial markets. As a result of our partnership with FTSE Russell, the launch of our pioneering suite of ESG derivatives further expands our service offering to global clients.”
The Singapore Exchange recently introduced new futures contracts tracking ESG indexes from FTSE Russell, building on their growing global index derivatives relationship. To see a recent London Stock Exchange Group opening bell ceremony with SGX to mark the launch, go to the London Stock Exchange Group website.
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