February 12, 2019
Moving Into the Mainstream: the Value of ESG Momentum
At Glenmede Investment Management, we have a long history investing for impact. The accessibility of environmental, social, and governance (ESG) performance data allows asset managers to continually evolve how this type of information is used in investment analysis.
Our inaugural article, Moving Into The Mainstream: ESG Momentum Adds Value, examines how ESG Momentum factor analysis can be indicative of the overall performance potential of a stock. CONTINUE READING >
1The performance information included in this table is hypothetical, included merely for illustration of theory and model structure, and does not represent the investment performance of any actual product. Choices of what to include in this article have been selected with the full
benefit of hindsight, after performance over the period was known. Results achieved in simulations do not guarantee future investment results. It is possible that the assumptions here are wrong, and that the actual results will be better or worse than what is discussed here. Although the information contained herein has been obtained from sources believed to be reliable, accuracy and completeness cannot be guaranteed. Simulated results do not include actual trading, so there is no
guarantee that any actual account could have achieved comparable results if managed during the relevant timeframe.
2Zoltán Nagy, Altaf Kassam, Linda-Eling Lee. “Can ESG Add Alpha? An Analysis of ESG Tilt and Momentum Strategies”. MSCI Research, June 2015.
3Khan, Mozaffar, George Serafeim, and Aaron Yoon. 2015. “Corporate Sustainability: First Evidence on Materiality.” Harvard Business School. Working Paper 15-073.
Although Glenmede Investment Management’s information providers, including without limitation, MSCI ESG Research LLC and its affiliates (the “ESG Parties”), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness of any data herein. None of the ESG Parties makes any express or implied warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
The views expressed represent the opinions of the portfolio managers as of December 2018. There can be no assurance that the same factors would result in the same decisions being made in the future. In addition, the views are not intended as a recommendation of any security, sector or product. Past performance is not indicative of future performance. Returns reported represent past performance and are not indicative of future results. Actual performance may be lower or higher than the performance set forth above. For institutional adviser use only, not intended to be shared with retail clients.