FYI: Key Points
.The demand for socially responsible investing strategies is growing as a means to manage environmental, social, and governance (ESG)–related risks—which can impact long-term returns—and as an opportunity to promote social and environmental issues, but much remains unknown about the performance potential of these strategies.
.Research identifies two ESG metrics linked to good corporate governance, which have the potential to drive performance: notably, financial discipline and diversity.
.Rebalancing positions using thoughtful smart-beta product design is a powerful market-tested return enhancer. Combined with the two forementioned performance-driving firm attributes, it is a proven way to construct an ESG strategy with strong long-term return potential.
Regards,
Ted
http://www.etf.com/sections/features-and-news/research-affiliates-unlocking-performance-potential-esg-investing-0?nopaging=1
