"A broad sustainability has its own wings," a column by Antonio Gil Nievas
"A broad sustainability has its own wings” is the title of a column by Antonio Gil Nievas, Moneda’s CEO, in La Tercera-Pulso. He states: "At Moneda Asset Management, we invest to obtain the best risk-adjusted returns for our investors in the long term.”
We invite you to read the column below:
Today, the best option is to make responsible investments while weighing the relation a company has with the environment, society and corporate governance. Not only because it is “the right thing to do,” but because this is proven by indices that measure profits. During the first ten months of 2018, the MSCI Emerging Markets ESG Leaders Index had a cumulative return of 155% compared to 89% for the MSCI EM Index, which does not measure ESG factors.
Years ago, an investor had to choose between being sustainable or being profitable. Nowadays, investors demand both because they go hand in hand with investing for the long term. The disjunctive is a thing of the past and of a short-term view. Being aware of our environment in the short and long term and requiring companies to act accordingly is a profitable business for our clients and, therefore, for asset managers.
In addition, making this decision helps us in the contribution of improving society, environmental care and corporate governance. 32 years have passed since the Brundtland Commission report was issued, originally called “Our Common Future.” This document, a UN product, sought for countries to work together to achieve goals. Here is where sustainable development was defined for the first time: a development that satisfies the needs of actual generations without compromising the ability of future generations to satisfy theirs. This is a description that continues to be fully applicable and intimately related to the aspirations of the world’s consumers and with what they are beginning to demand of companies and their governments.
At Moneda Asset Management, we invest to obtain the best risk-adjusted returns for our investors in the long term. In recent years we have been more rigorously including environmental and social factors, complementing our focus on corporate governance since our start 25 years ago, where our investment philosophy is grounded on a basic, long-term analysis. Focusing on corporate governance has helped strengthen the capital markets where we do business.
Today, what is best and sustainable is best for all. Welcome to the ESG world. The values of a broad sustainability are here to stay.
Read the column here