May 1, 2018

Environmental, Social and Governance Factors in Global Macro Investing

Systematically measuring ESG conditions for country comparisons detailed in Global Macro Shifts.

Templeton Global Macro®

Environmental, social and governance (ESG) factors are being recognized in fixed income investing as value-added indicators of potential economic performance. In this edition of Global Macro Shifts, Templeton Global Macro outlines how it integrates ESG factors into its research process. The team has developed a proprietary ESG scoring system called the Templeton Global Macro ESG Index (TGM-ESGI), to assess current and projected ESG conditions in various countries, and to facilitate macroeconomic country comparisons around the world.

ESG Factors in Fixed Income Investing

Dr. Michael Hasenstab discusses how ESG factors have always been a critical prong of Templeton Global Macro's research process, while Vivian Guo outlines why the team's ESG analysis differs from the rest.

TGM-ESGI Case Studies: A Tale of Two Countries

Dr. Michael Hasenstab highlights why Argentina stands out among the countries ranked by the TGM-ESGI, while Vivian Guo discusses the dire situation in Venezuela.

Global Macro Shifts: ESG Considerations within Our Outlook

Dr. Michael Hasenstab offers insights into how his team's rigorous approach to ESG is embedded within his current global economic outlook.

 

Contributors

Michael Hasenstab, Ph.D Portfolio Manager,
Chief Investment Officer,
Templeton Global Macro ®

Vivian Guo Research Associate,
Templeton Global Macro ®

Sonal Desai, Ph.D. Portfolio Manager,
Director of Research,
Templeton Global Macro ®

Calvin Ho, Ph.D. Deputy Director of Research ,
Templeton Global Macro ®

Hyung C. Shin, Ph.D. Senior Global Macro & Research Analyst,
Templeton Global Macro ®

Diego Valderrama, Ph.D. Senior Global Macro & Research Analyst,
Templeton Global Macro ®

Attila Korpos, Ph.D. Senior Global Macro & Research Analyst,
Templeton Global Macro ®

Shlomi Kramer, Ph.D. Senior Global Macro & Research Analyst,
Templeton Global Macro ®