What is ESG Quant?
This is an investment strategy created by the Anglo-German investment management firm Arabesque Partners. It involves quantitive equity investing using non-financial ESG information - environmental, social and governance data.
Where have you heard about ESG Quant?
In recent years, there have been improvements in the quality, coverage and supply of corporate ESG data and more investors now believe it can offer an advantage. In 2016, Deutsche Bank partnered with Arabesque to launch a range of new ESG investment products.
What you need to know about ESG Quant.
Quantitative investment uses a set formula to manage a portfolio and exploit inefficiencies in the market. To do this, ESG Quant funds rely on non-financial data gathered from corporate sustainability reports or external providers. They can then invest in companies with strong performance on ESG issues for their sector and region. The funds aims to invest in sustainable companies, which are better positioned for future stock price outperformance.