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How Quants Achieve Material Improvements in ESG Investment Performance

Thursday, June 18th, 10:00 am EST

ESG funds provide an important means for investors to align their portfolios with their values. However, the average ESG investor has underperformed the market - sometimes by a meaningful margin - while shouldering the same systemic risks borne by equity investors. Idiosyncratic risk mitigation is simply overpowered by systemic market risk during crises and corrections alike. This is exacerbated by the fact that ESG fund assets are almost entirely concentrated within long only equity funds as opposed to Fixed Income or Balanced funds.

Moreover, equity-only ESG funds may not provide the returns investors require going forward, especially post-COVID-19. For example, on average public pension plans have a 50% allocation to global equities, and a 7.2% investment plan return assumption. Given diminishing forward equity return expectations, it is likely that long-only ESG equity portfolios will not solve this problem alone.

While the first iterations of ESG investing are based on relatively simple data analysis and scoring, investors can now benefit from the next round of innovations that highly specialized quantitative investment experts are offering investors to achieve material improvements in ESG investment performance.

Welton Investment Partners is an established manager that applies a scientific approach to quantitative investing, offering solutions that are uncorrelated to traditional equity and credit-based investments. Welton has applied this quantitative approach to the development of a new holistic ESG strategy that suppresses market risk and expands beyond market-only returns.

This Opalesque SKILLSLAB webinar will cover:

  • Brief review of long-term performance of ESG funds: Near-market returns and unmitigated market risk may not represent the apex of achievable ESG performance
  • How a new quantitative approach to ESG strategy can guard against the key risk of acute economic contraction by mitigating downside risk.
  • Three ways this quantitative approach can improve an ESG portfolio’s risk/return profile:

1. Integration of timely and broad ESG datasets

This allows for the manager to combine big data and ESG metrics to assess the performance and sustainability of companies worldwide

2. Dynamic stock selection and weighting using machine learning techniques

Alternative techniques taking risk exposures into account have the potential to better manage portfolio volatility.

3. Integration of orthogonal strategies to mitigate market risk and enhance performance

The addition of a diversifying trend strategy to the mix has the potential to elevate investor experience away from market risk, and beyond market-only performance.


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The Corona Fighters: Meet the asset managers who actually delivered during the melt down

Episode 3: Tuesday, June 23 10 am EST

Opalesque presents five investment managers who deliver a succinct presentation how and why their strategies delivered positive returns and/or protected during the Corona led market meltdown, with Q&A session.

For investors only - register now as seats are limited.

You will be able to tune in to this webinar from any computer, tablet, or smartphone. The webinar will be recorded - in case you are not able to join, all registered participants will be provided a link to replay the webinar.

PAST WEBINARS

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The Corona Fighters: Meet the asset managers who actually delivered during the melt down

"This webinar was really informative and insightful about how these managers assess and manage risk. I also appreciate that it was smaller managers which is not what most firms focus on. "

Was very good. Thought a useful selection of managers. Well done. (JC)

Thank you for hosting this webinar. It was very interesting. (SW)

This webinar was really informative and insightful about how these managers assess and manage risk. I also appreciate that it was smaller managers which is not what most firms focus on. (LH)

I really enjoyed this Corona Fighters webinar. (CW)

With five investment managers, May 19th 2020

Opalesque presents five investment managers with a succinct presentation how and why their strategies delivered positive returns and/or protected during the Corona led market meltdown, with Q&A session.

  • What to do in times of crisis and what not to do
  • Tools that can be used to navigate crisis
  • The Art of Accepting Crisis Paradoxons
  • Managing a Crisis Starts With Managing Stress
  • The 7 P's of Managing a Crisis
  • Turning Adversity into Opportunity


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The Corona Fighters: Meet the asset managers who actually delivered during the melt down

"A well-chosen topic of discussion and a great set of speakers to hear and learn from."

A great format. Really informative. (KP)

I enjoyed the webinar and found the introduction to the strategies to be diverse and insightful. (SL)

The webinar was very good, including the format, hence my registration for Episde 2. (GM)

Appreciate the wisdom of all the managers, as a result of a lifetime in crazy markets. (ET)

Wonderful presentations, all - thank you for all the great perspectives and insights. (ED)

Many thanks to all participants. Very resourceful and insightful. (OU)

Great presentations and thanks to all of the speakers for such an informative session It was a pleasure attending the webinar today. (SH)

Wonderful presentations. Thank you. (DB)

Thanks for the webinar! Always a pleasure to attend your SKILLSLAB series. (RM)

I learnt about managers I did not know. (TD)

With five investment managers, April 20th 2020

Opalesque presents five investment managers with a succinct presentation how and why their strategies delivered positive returns and/or protected during the Corona led market meltdown, with Q&A session.

  • What to do in times of crisis and what not to do
  • Tools that can be used to navigate crisis
  • The Art of Accepting Crisis Paradoxons
  • Managing a Crisis Starts With Managing Stress
  • The 7 P's of Managing a Crisis
  • Turning Adversity into Opportunity


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COVID-19 Survival Training for Family Businesses

"One of the most thorough and well prepared webinars I have ever attended."

One of the most thorough and well prepared webinars I have ever attended. Thank you! (JZ)

Great presentation. This is a game changer. (DS)

I am currently invited to many such sessions, but yours yesterday with Octavian was really outstanding! (MS)

Thanks for uploading the informative webinar. It offers a based overview of the methods and pitfalls that arise from the nature of complex relationships or crises. (KS)

Thank you for this. Very compelling ideas! (K)

Very good presentation! Very thorough and useful! (GR)

Thank you for a very informative presentation (KP)

Thanks for the structured presentation! (EVR)

Huge thank you! (EB)

With Octavian Graf Pilati, April 15th 2020

This Opalesque SKILLSLAB webinar will cover:

  • What to do in times of crisis and what not to do
  • Tools that can be used to navigate crisis
  • The Art of Accepting Crisis Paradoxons
  • Managing a Crisis Starts With Managing Stress
  • The 7 P's of Managing a Crisis
  • Turning Adversity into Opportunity


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Climate Change and Carbon as a Liquid Asset Class

"This webinar on carbon markets and trading is brilliant!!"

This webinar on carbon markets and trading is brilliant!! (RH)

A first rate presentation! Michael had some great slides and a strong message. (LM)

Very informative, sobering and yet inspiring. (WJ)

The webinar was excellent and well worth my staying up until midnight to watch it live from my time zone!! (IJ)

Thank you for such an insightful presentation. Awesome job. (ET)

Terrific presentation. (WJ)

With Michael Azlen, CEO Carbon Cap Management LLP, April 7th 2020

  • The Science of Climate Change
  • The Paris Agreement & the importance of carbon pricing
  • Cap and Trade as a successful policy tool and how it is spreading globally
  • Why carbon has outperformed other asset classes since 2012, with a higher Sharpe Ratio and low correlation
  • The outlook for carbon prices and how to add value with active risk management & multiple alpha strategies
  • How investing into carbon can generate attractive returns and a direct impact on climate change


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RETHINKING MANAGER SELECTION:

SKILL OR LUCK?

"Thank you for such an insightful Webinar with Cedric. I really caught some new light."

Thank you for such an insightful Webinar with Cedric. I really caught some new light. One of the things Cedric highlighted was the importance of "management" understanding the risk strategies being undertaken. I also applause him for highlighting the effects of AUM growth on the fund, that was really insightful. (CD)

I watched the recording immediately after it became available, it provided some good perspective. I will be an eye out for any such engagements again in the future. (RS)

Intriguing webinar - lots to take away. (A)

With Cedric Kohler, Head of Advisory at Geneva-based Fundana, March 2nd 2020

  • How do you select good managers?
  • What does "good manager" actually mean?
  • How do you differentiate skill and luck?
  • And when is a good time to exit a manager?



CONTACT

Problems, comments, questions? Please email support@opalesque.com or call Opalesque Sales & Support at +1 914 619 5223 (Telephone support is available Monday through Friday from 9 AM to 5 PM GMT).
To speak with our editor Matthias Knab, dial +49-89-2351-3055