Scientific Beta

FS Sustainability: "Scientific Beta research director, co-author on the study Felix Goltz, commented: "ESG fund returns largely depend on fund-specific choices of how to integrate ESG information. This suggests that ESG investors face substantial fund selection risk. Importantly, traditional fund selection strategies like relying on past performance or tracking error are inadequate for predicting future ESG fund performance."

FS Sustainability 10/05/2024

"(...) Scientific Beta research director, co-author on the study Felix Goltz, commented: "ESG fund returns largely depend on fund-specific choices of how to integrate ESG information. This suggests that ESG investors face substantial fund selection risk. Importantly, traditional fund selection strategies like relying on past performance or tracking error are inadequate for predicting future ESG fund performance. "Our evidence emphasises that inconsistencies in ESG approaches contribute to significant dispersion in the performance of ESG investment products. Investors need to be aware that fund selection risk is a material issue for sustainable investment strategies." Large disparities in performance create fresh concerns for product providers, Goltz conceded. (...)"