With uncertainty in global equity markets, and with large
industrial country economies struggling and Asia showing signs
of slowing down, investors continue to find that companies
investing in sustainability deliver superior performance,
especially in Latin America.
Sustainable indexes in LatAm continue to outperform benchmarks. A rising number of regional companies with strong practices gives index makers more names to choose from.
As of April, the M&E LatinFinance Sustainability Stars
Index had returned 23% in the 28 months since its creation,
compared to a 7.9% loss in the Bovespa during that period. The
Bovespa's own indexes highlighting corporate governance also
outperformed during that period, including the Bovespa
Governance Index IGC (12.3% return), Bovespa IGCT Governance
Index (9.4%) and the Bovespa ITAG special tag-along index ,
which tracks shares that offer exceptional conditions for
minority shareholders (11.6%).
"A way you can quantify [the importance of corporate
governance] is to look at the relative performance of the Novo
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