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Can bond fund managers have influence over ESG?

Once companies have raised capital they may not be engaged with bond holders for many years

James Tomlins


Jassmyn Goh

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 video above to find out further how bond fund managers are creating impact with their investments.