By coordinating their equities department with their bond department, fixed income fund managers can be very influential on environmental, social, and governance (ESG) aspects with the companies they invest in, according to M&G Investments.
M&G fixed income fund manager, James Tomlins, said coordinating the two departments would allow them to be both owners and lenders of balance sheets they are invested in.
“Businesses then really have to listen to you because they’re going have to come back and talk to you about the financial aspects and raising capital in the future the most certainly,” Tomlins said.
Tomlins noted that businesses especially in the private space did want to do the right thing and improve their ESG credentials.
Watch the full interview on ESG Clarity‘s sister site, Expert Investor.