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.