In Active Quantitative Equity, we view ESG as an alternative, non-traditional quality signal capturing difficult-to-measure corporate characteristics, which are diversifying compared with traditional measures of financial quality. We have recently upgraded our ESG signal to embrace the benefits and scale of the Sustainability Accounting Standards Board’s reporting framework and State Street Global Advisors’ leading-edge ESG data infrastructure.
In the COVID-19 era, investors face a difficult challenge: achieving return objectives in a persistently low-yield environment while still being mindful of risk as equity markets return to more normal levels of volatility.
The first order effects of the coronavirus shock have been acute, but the longer term will bring more widespread economic impact — likely an economic downturn and subsequent recovery, each of unknown timing, magnitude and duration.
Retailing and Autos as well as Software & Services generated unexpectedly elevated returns.
Defensive equity strategies with 80:60 characteristics can meaningfully outperform their regional benchmarks
78% of our Active Quantitative Equity strategies beat their benchmarks over a five-year horizon.*