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BLOOMBERG BARCLAYS MSCI ESG FIXED INCOME FAMILY

A Market Standard for Environmental, Social, and Governance Investing in Fixed Income

Bloomberg, a global leader in fixed income indexing, and MSCI, the world’s largest provider of ESG (environmental, social, and governance) equity indexes and research, have collaborated on the development of a family of rules-based benchmark indexes that incorporate measures of ESG risk and exposures.

The Bloomberg Barclays MSCI ESG Fixed Income Indexes includes a range of investment grade aggregate and corporate index benchmarks addressing the evolving needs of institutional investors, who increasingly aim to incorporate ESG considerations into their strategic asset allocation.


BROAD ESG INDEXES
  • Bloomberg Barclays MSCI ESG-Weighted Indexes use MSCI ESG Ratings and MSCI ESG Ratings momentum to overweight/underweight issuers within an existing Bloomberg Barclays fixed income index. These indexes include the full universe of index eligible securities and then apply tilts to the natural market value weights in favor of higher rated/positive momentum issuers and against lower rated/negative momentum issuers.
  • Bloomberg Barclays MSCI Sustainability Indexes positively screen issuers from existing Bloomberg Barclays fixed income indexes based on MSCI ESG Ratings, which are a “best in class” assessment of how well an issuer manages ESG risks relative to its industry peer group. ESG Ratings are available for corporate, sovereign, and government-related issuers. The minimum threshold applied to Bloomberg Barclays fixed income indexes is an ESG rating of BBB or better.
  • Bloomberg Barclays MSCI Socially Responsible (SRI) Indexes negatively screen out issuers from existing Bloomberg Barclays fixed income indexes that may be involved in business lines or activities that are in conflict with investment policies, values or social norms. These indexes use MSCI Business Involvement Screening Research (BISR) and MSCI ESG Controversies to identify exposure to screened issues.
  • Bloomberg Barclays MSCI US Aggregate ESG Choice Bond Index aims to identify issuers from existing Bloomberg Barclays fixed income indexes with strong positive environmental, social and governance (ESG) ratings, which are a “best in class” assessment of how well an issuer manages ESG risks relative to its industry peer group. In addition, these indexes use MSCI Business Involvement Screening Research (BISR) and MSCI ESG Controversies to identify exposure to screened issues.
THEMATIC ESG INDEXES
  • Bloomberg Barclays MSCI Green Bond Indexes offer investors an objective and robust measure of the global market for fixed income securities issued to fund projects with direct environmental benefits. MSCI ESG Research’s independent research-driven methodology is used to evaluate index-eligible green bonds to ensure they adhere to established Green Bond Principles and to classify bonds by their environmental use of proceeds.

MSCI ESG Indexes

Over USD 125 Billion in institutional, retail and exchange-traded fund assets are benchmarked to MSCI ESG Indexes

ESG Fixed Income Index Primer

Download the comprehensive methodology booklet for the Bloomberg Barclays MSCI ESG Fixed Income Index Family

ESG101.com

What are the common approaches to ESG investing?

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