Scientific Beta

Wealth Professional Canada: "Many proponents of ESG investment believe that it can be a source of outperformance, creating the opportunity for investors to do well as they help companies do good. But according to recent research from a well-known index provider, the evidence on that is not so clear-cut. In a white paper titled ‘Honey, I Shrunk the ESG Alpha’: Risk-Adjusting ESG Portfolio Returns, the firm hit back against the broadly shared view across the asset management industry that ESG delivers long-term outperformance, reported ETF Stream."

Wealth Professional Canada 17/05/2021

"(...) Many proponents of ESG investment believe that it can be a source of outperformance, creating the opportunity for investors to do well as they help companies do good. But according to recent research from a well-known index provider, the evidence on that is not so clear-cut. In a white paper titled ‘Honey, I Shrunk the ESG Alpha’: Risk-Adjusting ESG Portfolio Returns, the firm hit back against the broadly shared view across the asset management industry that ESG delivers long-term outperformance, reported ETF Stream. According to the paper, the view is questionable because of its reliance on strong returns observed across sustainable strategies since the Global Financial Crisis. (...)"