Fri, Apr 28, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Socially responsible investments provide higher yield

Monday, September 08, 2014

Komfie Manalo, Opalesque Asia:

A study by New Amsterdam Partners showed that asset managers with high ESG (environmental, social and governance) ratings provide higher gains with their portfolios compared to managers with low ESG ratings.

In a study entitled The Benefits of Socially Responsible Investing: An Active Manager's Perspective affirmed the principles of ESG. One test compared 100 randomly selected and equally weighted 40-stock portfolios selected from a universe of U.S. stocks with an identically created set except that the lowest 10% of ESG companies were removed. The mean returns were higher for the second group of portfolios in five of the six years measured.

ESG stands for the three pillars of sustainable investing: environmental, social and governance. The core principle of sustainability is that if a company's environmental, social and governance practices do not rise to global norms, then corporate performance will in the long run be unsustainable.

The study also found that stocks with higher ESG ratings tend to be associated in the aggregate with superior returns and lower price volatility.

Indrani De, co-author of the study, commented, "Clearly, asset managers can actively use ESG information and exclude......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Ex-Man manager combines sustainable investing with AI/ML[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Dr. Richard Bateson, quant fund manager and physicist, has recently

  2. Hedge funds holding Puerto Rico bonds are looking at a long battle[more]

    Komfie Manalo, Opalesque Asia: Hedge funds which bought Puerto Rico's distressed debt bonds are facing the prospect of a long road ahead to recover their investments as the Caribbean island is attempting to use a U.S. Congress-approved rule that allows it to exploit a bankruptcy-like proceedings

  3. Other Voices: "Winner-take-all" dynamics and hedge fund investing[more]

    A growing stream of thinking in microeconomics is the concept of "winner-take-all" dynamics. The idea seems simple. A combination of networking economics and classic economies of scale creates situations where there are just a few dominant firms or economic agents who are able to capture significant

  4. Investing - How Chipotle's comeback attracted big data robots and value investors alike[more]

    From Forbes.com: When William Ackman's ailing hedge fund Pershing Square Capital Management bet $1 billion on shares in Chipotle Mexican Grill beginning in July 2016, the stakes couldn't have been higher. Pershing Square was reeling from what would eventually be a near $4 billion loss in drugmaker V

  5. Service Providers - Colemore launches fee tracking service for limited partners[more]

    Following Colmore's successful launch in January 2017, the firm has announced the launch of FAIR.. FAIR is designed to help private equity investors independently validate fees and incentives charged by underlying managers, saving time and providing an extra level of comfort. There is a glob