Stratégies
Solutions & Multi-Asset
Applied Global Concentrated ESG Equity Strategy
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Applied Global Concentrated ESG Equity Strategy |
Stratégies
Solutions & Multi-Asset
Applied Global Concentrated ESG Equity Strategy
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Broad market factors can drive majority of returns
Historically, 65% of a manager’s relative performance is determined by their style, risk and geographic bias relative to their benchmark. By remaining flexible, we can tilt the portfolio towards styles, regions or sectors we believe have the greatest likelihood of producing excess returns.
Stock selection can be additive to alpha generation
The remaining 35% has come from a manager's stock selection. Therefore, company-specific analysis can help generate additional contribution to portfolio's overall return.
Material ESG issues can affect returns
Research has demonstrated that investing in companies that prioritize ESG issues that are material the the company's core business practices for a company's particular sectors can add to a manager's ability to deliver positive results.1
ESG VIEWED THROUGH LENS OF MATERIALITY |
Stocks undergo a sustainability analysis focused upon the specific ESG issues that can have a material impact on their business. |
UNCONSTRAINED AND ADAPTIVE |
Our active approach is unconstrained by style and adapts to changing markets. The portfolio aims to tilt toward the investment style (growth, value, defensive) most likely to drive markets in the next six to 12 months. Stock selection considers Environmental, Social and Governance (ESG) factors that are material to a given company. |
TWO SOURCES OF POTENTIAL EXCESS RETURN |
The process aims to blend 1) quantitative factor analysis with 2) an evaluation of company-specific factors (including a sustainability analysis). The results can offer two distinct sources of excess return. |