Scientific Beta

Banking Exchange: "Outperformance from environmental, social and governance (ESG) themed funds disappears when adjusting for risk, a new report has claimed. A significant body of research has developed in the past few years indicating that investors do not need to sacrifice returns in order to invest in ESG-themed products or strategies. However, smart beta group Scientific Beta argued in a paper that a lack of consideration of risk may have produced inaccurate results in some of this research."

Banking Exchange 04/05/2021

"(...) Outperformance from environmental, social and governance (ESG) themed funds disappears when adjusting for risk, a new report has claimed. A significant body of research has developed in the past few years indicating that investors do not need to sacrifice returns in order to invest in ESG-themed products or strategies. However, smart beta group Scientific Beta argued in a paper that a lack of consideration of risk may have produced inaccurate results in some of this research. The firm’s report – titled ’Honey, I Shrunk the ESG Alpha’: Risk-Adjusting ESG Portfolio Returns – argued that there was no solid evidence supporting claims that ESG strategies generate outperformance. (...)"