Scientific Beta

Investment News New Zealand: "A new study has debunked claims environmental, social and governance (ESG) investing provides either market ‘alpha’ or downside protection in its own right. The just-published analysis by research firm Scientific Beta also suggests the recent surge of money into ESG funds could lower longer term return prospects for the strategies."

Investment News New Zealand 16/05/2021

"(...) A new study has debunked claims environmental, social and governance (ESG) investing provides either market ‘alpha’ or downside protection in its own right. The just-published analysis by research firm Scientific Beta also suggests the recent surge of money into ESG funds could lower longer term return prospects for the strategies. According to the ‘Honey, I shrunk the ESG alpha’ report, none of the 12 strategies examined in the study outperformed after accounting for underlying factor biases. The paper says about 75 per cent of claimed ESG alpha can be attributed to a ‘quality’ factor tilt alone. (...)"