PanAgora Asset Management Launches New ESG Alpha Factors and Next Generation ESG Modeling Framework
BOSTON, April 18, 2018 /PRNewswire/ — PanAgora Asset Management («PanAgora» or the «Firm»), one of the world’s preeminent systematic quantitative investment firms, today announced that it has launched a new suite of proprietary ESG alpha factors that have been enhanced through materiality technology and an integrated portfolio construction framework designed for today’s rapidly evolving ESG investment landscape.
PanAgora has a long history of innovative factor development rooted in quantifying the fundamental drivers of company performance. In keeping with the Firm’s objectives of maximizing alpha generation while minimizing downside risk, PanAgora’s new ESG alpha factors identify companies with dominant competitive advantages within their respective industries as well as other considerations, including shareholder, employee and customer composition, and relevant environmental matters. The Firm’s factors are unique and differentiated from other solutions in the industry in that they are highly customizable and multifaceted, and help to solve for what have traditionally been generic, one-dimensional ESG investment strategies built by third-party vendors that simply restrict controversial companies and/or industries, and do not take into consideration important variables such as measuring materiality across companies or company management’s behaviors.
«Still an evolving field, there hasn’t been a well-designed process to best construct portfolios that optimally combine profit maximizing characteristics with ESG characteristics and client-specific requirements,» said George Mussalli, Chief Investment Officer, Equities at PanAgora. «We have developed, what we believe, is a next generation quantitative process for constructing ESG portfolios that utilize a broad array of innovative factors that are flexible, relevant and dynamically optimal.»
Additional information about PanAgora’s new ESG alpha factors and portfolio construction approach can be found in a newly released research paper titled, «Integrated Alpha: The Future of ESG Investing.» For a copy of the paper, please click here.
About PanAgora Asset Management:
Founded in 1989, PanAgora Asset Management is a leading global investment firm that utilizes sophisticated quantitative techniques that incorporate fundamental insights and vast amounts of market information spanning absolute and relative return strategies within alternative, risk premia and active equity disciplines. PanAgora had approximately $54 billion of client assets under management, as of December 31, 2017. More information about PanAgora can be found by visiting www.panagora.com
SOURCE PanAgora Asset Management