ESG Index Investing
Smart, Efficient Integration of ESG Criteria
We partner with clients seeking to achieve target levels of carbon reduction and/or ESG ratings, additional investment objectives such as alignment with the Paris Agreement, or climate mitigation and adaptation.
When integrating ESG, we balance between tracking error (risk) and sustainability objectives, leveraging the trading efficiencies from our index portfolio management platform.
Our investment management business was founded on indexing. From introducing our first S&P 500 index fund in 1978 to launching the first exchange traded fund (ETF) in the US in 1993, there are few challenges our experienced portfolio management teams haven’t seen and can’t solve.
In ESG Index Assets Under Management 1
As a Leader in ESG Investing
Global Equity Beta Solutions Portfolio Managers 2
Breadth of Solutions
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Addressing Climate Risk
Investors may want to consider climate risk due to concerns over future changes in the energy industry, costs related to the transition of businesses to cleaner operations, values related to sustainable issues or other reasons. Hear Jenn Bender, Ph.D., Head of Research for Global Equity Beta Solutions, discuss the wide range of options investors can use in their indexed portfolios to address climate change.
To learn more about our ESG Solutions please contact your Relationship Manager.
1Estimated and unaudited ESG AUM as of September 30th, 2021 for client mandates in the following categories: Negative/exclusionary screening, Norms-based screening, Best-in-class investment selection, and Sustainability-themed investing, as defined by United Nations Principles for Responsible Investing (UNPRI) as:
• Negative/exclusionary screening: The exclusion from a fund or portfolio of certain sectors, companies or practices based on specific ESG criteria.
• Norms-based Screening: Screening of investments against minimum standards of business practice based on international norms
• Positive/best-in-class screening: investment in sectors, companies or projects selected for positive ESG performance relative to industry peers
• Sustainability themed investing: Investment in themes or assets specifically related to sustainability (for example clean energy, green technology or sustainable agriculture) 2As of September 30, 2021
Investing involves risk including the risk of loss of principal.
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The returns on a portfolio of securities which exclude companies that do not meet the portfolio's specified ESG criteria may trail the returns on a portfolio of securities which include such companies. A portfolio's ESG criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.
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