Leola Ross

Many investors still see environment, social and governance (ESG) factors as values-oriented.

Many investors still see environment, social and governance (ESG) factors as values-oriented.

In recent years, an increasing number of investors have formed dual investment goals: maintain strong investment returns while expressing views on specific industries (such as tobacco, carbon or controversial weapons). As part of this demand, investors also want to understand the performance impact of these exclusions on their portfolio. To meet this need, we created thousands of simulated portfolios with various exclusions. Then we evaluated the performance distribution of these portfolios to identify how – and how much – negative screening can materially affect a portfolio.

In recent years, an increasing number of investors have formed dual investment goals: maintain strong investment returns while expressing views on specific industries (such as tobacco, carbon or controversial weapons). As part of this demand, investors also want to understand the performance impact of these exclusions on their portfolio. To meet this need, we created thousands of simulated portfolios with various exclusions. Then we evaluated the performance distribution of these portfolios to identify how – and how much – negative screening can materially affect a portfolio.

We’ve been talking a great deal recently about the debate between active management and passive investing. As a multi-asset shop, we take an active AND passive approach to building portfolios. We firmly believe active has a place, but only when you have skill in selecting active managers. Finding the right managers is hard work.

We’ve been talking a great deal recently about the debate between active management and passive investing. As a multi-asset shop, we take an active AND passive approach to building portfolios. We firmly believe active has a place, but only when you have skill in selecting active managers. Finding the right managers is hard work.

Some larger AUM managers can produce strong returns—but how? Our director of investment strategy research, Leola Ross, explores possible reasons and shares our preferences for evaluating managers with increasing AUM.

Some larger AUM managers can produce strong returns—but how? Our director of investment strategy research, Leola Ross, explores possible reasons and shares our preferences for evaluating managers with increasing AUM.