Exclusions Evolved: Minimizing tracking error through intelligent optimization
Moving beyond simple screening when constructing an ESG portfolio
A major challenge investment managers face when using exclusion screens to raise the ESG rating of their portfolios is introduced tracking error. Our latest Special Report presents an evolution of the screening toolset that aims to minimize this active risk.
The larger the tracking error in a portfolio, the less risk budget available that could otherwise be put toward assets with strong ESG metrics. How to evolve a screening methodology to minimize tracking error? This new Special Report finds out.
Exclusions Evolved: Minimizing tracking error through intelligent optimization (Special Report, 2023)
Discover how a new method of screening combines with a risk model and harnesses the correlations between assets to provide lower active risk.
