- Investors are increasingly looking for straightforward ways to align their investments with their personal views on environmental and societal issues.
- While the Global Choice screening process can have a significant impact on the composition of certain industries, our research found that the overall long-term effect on index performance was minimal, and that Global Choice indexes behaved very similarly to their underlying benchmarks (with correlations and betas close to 1 over time).
- Though the correlation briefly dipped below 0.95 earlier in the period, it has stabilized around a high of approximately 0.994 more recently.
For further details see:
Part 1: Aligning Portfolios With ESG Values In Australia