Innovative SRI Method Attracts Investors
Institutional investors are pioneering another pathway in the still evolving field of socially responsible investing. “The recent launch of indices and funds offering smart beta incorporating environmental, social and governance (ESG) considerations indicates there is investor appetite out there. . .These allow investors to integrate a responsible investment approach alongside smart beta factors that hunt good-value and low-volatility assets,” reports the Financial Times. This approach applies ESG filters before adding any smart beta strategy’s alternative weighting schemes, such as momentum or value. The goal is better risk and returns than conventional indices. The bottom line is yet another innovation in how investment dollars can drive progressive change.
John Howell, Editorial Director