Environmental, Social and Governance


Multifactor ESG

Combining the outperformance potential of smart beta with the risk mitigation benefits of ESG, our Multifactor ESG strategy targets delivery on multiple fronts.

We know that there is a clear need for additional returns while being mindful of risk. Also, ESG considerations are becoming more imperative, both from an aspirational point of view but also because of the potentially high cost impact of ESG-related risk. Broader stakeholders and regulators are also taking a keener interest in these topics and encouraging asset owners to take action.


Combining Smart Beta with the Risk-Mitigation Benefits of ESG

To address both of these needs, our strategy uses sophisticated portfolio construction techniques to integrate smart beta’s performance potential and the positive characteristics of ESG into one easy-to-govern package.

Smart beta allows investors to capture the known drivers of return — smart beta factors — in a transparent, cost-efficient way. Incorporating high ESG-scoring stocks into a portfolio typically translates into lessened ESG risk. 

Our ESG implementation takes care to include not only Environmental scoring but also Social and Governance considerations. This results in an investment with broad-based ESG impact.


Getting Implementation Right

Our ESG implementation takes care to include not only Environmental scoring but also Social and Governance considerations. This results in an investment with broad-based ESG impact.


Strategy Features

  • Outperformance potential
  • Multiple return drivers for varying market environments
  • Improves ESG and carbon profile, helping protect against risks
  • Cost-effective implementation
  • Governance simplicity

Outperformance Potential & True ESG Impact


2.8%

Annualised projected outperformance (relative to MSCIW)


20%

Improvement in ESG score (relative to MSCIW)


50%

Reduction in Carbon Emission and Reserves Intensity