Index and data providers IHS Markit and MSCI have partnered for the launch of a short maturity corporate bond index range with an environmental, social and governance (ESG) screener.
The iBoxx MSCI ESG Liquid Investment Grade Ultrashort index is available in EUR, USD, GBP.
The partnership involves MSCI providing its ESG rating and research to be applied to IHS Markit’s broad fixed income and credit indices, including the recently launches corporate bond index.
The index is comprised of short-duration corporate bonds. To be included within the iBoxx ESG index, the credit issuers are required to have an MSCI ESG rating of BBB or above as well as complying with the United Nations Global Compact principles.
This year already, MSCI has made a significant push for the investment industry to adopt sustainable strategies having released a framework for full ESG integration.
Sophia Dancygier, head of indices at IHS Markit, said in a statement: "Investors have a growing appetite for exposure to ESG funds, creating a need for indices that integrate these principles while accurately representing the underlying market and continuing to deliver strong returns.”
With 25,000 benchmarks, IHS Markit has over $135bn in assets linked to ETFs tracking its indices.