SRI research to take in emerging marketsOctober 2004
Two companies in the investment sector have jointly developed a socially responsible approach to emerging markets.
Investment research and advisory firm Innovest and emerging markets specialist Rexiter will combine their knowledge and research to identify socially responsible companies in developing nations that can be included in the investment portfolio of one of Rexiter’s pension fund clients – whose identity is being kept confidential. They claim the approach, christened the Innovest/Rexiter Emerging Markets Sustainability Strategy, is the first of its kind.
Kenneth King, Rexiter’s managing director, said his firm will identify 70 companies among 500 emerging market businesses with capitalizations exceeding $500million (£277m). Innovest will research the sustainability of the 70 companies and identify the best sectoral performers.
According to Matthew Kiernan, chief executive of Innovest, the ‘information inefficiencies’ of emerging markets are even more profound for sustainability information than for traditional financial data and convey a significant ‘information advantage’ to investors willing to do the extra research.
The fund invests in Brazil, China, Hungary, India, Poland and Russia, among other countries. London-based Rexiter is an affiliate of State Street Corporation and manages $1billion in assets.
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