In this article, Pax analyzes the effect ESG factors have on non-U.S. developed markets risk and returns. Performance attribution of the Pax MSCI EAFE ESG Leaders Index Fund shows that companies with strong ESG profiles positively contributed to performance.
Think of sustainability analysis the same way you think of financial analysis. Different approaches to the same multifaceted problem are a source of innovation, a way that smart and insightful people can distinguish their work.
Smart beta and Environmental, Social and Governance (ESG) integration have both gathered strong momentum, with significant asset growth in strategies using each discipline. Multifactor smart beta strategies, with their longer-term focus and factor diversification, provide a natural platform for the integration of ESG.
In this quarter's commentary, we'll take a closer look at the connection between technology and sustainable investing. We illustrate ways technology is driving economic value, along with positive environmental and social advances in the Energy and Healthcare sectors, respectively.