Strategies that alter standard asset class exposures to create investment exposures that are customised to help you meet your specific Responsible Investment beliefs e.g. Environmental, Social, Governance (ESG) measures, carbon exposure.
You have non-standard or bespoke needs or specific investment beliefs, e.g. particular ESG criteria to exclude certain types of stocks.
Strategies based on standard indices may not be appropriate and you do not want to compromise your Responsible Investment beliefs.
Case study & Papers
Industry Super Fund seeks carbon reduction
When this industry fund decided to introduce a carbon footprint reduction strategy in its global equities portfolio, it needed an expert in rules-based quantitative investing. Drawing on its proprietary methodology in factor exposures, Russell Investments has enabled the Fund to achieve a 50% carbon footprint reduction while minimising the risk of the strategy relative to benchmark.
reduction in carbon footprint
securities reviewed for ESG characteristics
Country and sector risk managed
European institutional investor seeks ESG portfolio
A European institutional investor tasked Russell Investments with improving the returns from their global equity portfolio. The client had previously implemented their allocation via two global equity 'Responsible Investing' (RI) mandates to maintain good environmental, social and governance (ESG) practices. However, performance from both managers was disappointing. Russell provided a more efficient approach to implementing ESG consideration to maximise their return potential..
Outperformed its benchmark by over
Cost effective execution from trading across mandates
Reduced alpha volatility with diversified manager styles
The Russell Portfolio Decarbonisation Strategy
Decarbonisation is increasingly becoming a part of investment policies and is impacting both active and passive investment strategies. In this research paper we investigate different approaches to reducing the carbon footprint of an equity portfolio without materially impacting performance.
index produces >80% of carbon footprint
sectors emit 2/3rd of carbon footprint in index
4 approaches to portfolio decarbonisation reviewed