Perhaps surprisingly, systematic investment managers are uniquely positioned to conduct company engagements. Scalable and sophisticated analytical methods, including artificial intelligence
applied to analyse alternative data, can generate distinctive insights for prioritising and conducting engagements in the context of expansive holdings universes.
Based on Acadian Asset Management's data science toolkit, they engage with companies in relation to three ESG themes integrated into their investment process:
- Climate action.
- Corporate culture.
- Corporate behaviour, as well as other ESG-related controversies that pose financial risk to companies they own.
While some investors may associate ESG engagement with discretionary and concentrated investing approaches, the systematic investing process offers two important benefits in ESG engagement.
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