ESG in sovereign fixed income investing: from numbers to narratives – Morgan Stanley Investment Management

As fixed income investors, Morgan Stanley Investment Management view the integration of ESG factors into the evaluation of sovereign bonds as a critical component of their investment process.

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... Since the establishment of Morgan Stanley Investment Management's Sovereign ESG Methodology in 2019, the company have been evolving their approach to evaluating countries’ sustainability performance to support their sovereign bond investment decision process. 

Morgan Stanley Investment Management's framework continues to aim to identify countries with leading ESG practices or positive improvement, while avoiding systematic bias against developing countries through contexualising countries’ performance within their stage of development.

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