ESG returns – as a matter of factor… – Man Group

Mainstream ESG equity strategies have had a poor start to the year. In Man Group view, this doesn’t disprove the existence of ESG alpha; rather, it proves the importance of understanding the underlying drivers of returns.

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... For doubters of ESG alpha, the recent weak returns perhaps offer validation and an “I told you so” moment. Whether the recent episode is a one-off, or whether there is long-term 'alpha' in ESG signals, are topics for another day. However, Man Group believe the answer is complex, nuanced and very much debatable. In this article, the firm will focus more specifically on decomposing the experience of the past two years to better inform this broader discussion.

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