Stock pickers in developing economies who base investment decisions on social parameters have generated substantial above-market returns in the past few years, according to the Institute of International Finance.
Returns from emerging-market indices that allocate more to companies that score well on environmental, social and governance factors are “strikingly higher” than for the broader regional gauges, analysts including Emre Tiftik, the institute’s deputy director for global capital markets, wrote in a note dated Feb. 14.
