ESG alpha, novel metrics and integration in the investment process | Mozaffar Khan
In episode 68, Alex Proimos speaks with Mo Khan, vice president, senior quantitative research analyst at Causeway Capital Management.
In this episode, we discuss how the sensitivity around ESG has evolved over the past 10 years, the economic rationale between ESG and alpha, the importance of developing an internal view of ESG factors and how they line up with the many data sources and signals available. We also cover how ESG differs at the stock level versus integration at the portfolio level, how ESG engagement can be sometimes viewed as an alternative to negative screens, standardisation in ESG reporting, and finally the role of investor education and the sharing of research between fiduciaries.
This market commentary expresses the views of Mozaffar Khan, a quantitative senior quantitative analyst at Causeway Capital Management LLC, as of November 2020 and should not be relied on as research or investment advice regarding any stock. These views and any portfolio holdings and characteristics are subject to change. There is no guarantee that any forecasts made will come to pass. Forecasts are subject to numerous assumptions, risks, and uncertainties, which change over time, and Causeway undertakes no duty to update any such forecasts. Information and data presented have been developed internally and/or obtained from sources believed to be reliable; however, Causeway does not guarantee the accuracy, adequacy, or completeness of such information. “Alpha” means performance exceeding the benchmark index.
All views expressed on this podcast are subject to change and do not necessarily reflect the views of Conexus Financial. This podcast is fo educational purposes only and should not be relied upon as investment advice.