Willis Towers Watson, MSCI develop new ESG strategy
Global advisory and broking firm Willis Towers Watson announced that it has developed a new investment strategy with MSCI emphasising the importance of integrating environmental, social and governance (ESG) factors within the investment process.
The global advisory said it has worked with MSCI to establish the Adaptive Capped ESG Universal Index, a strategy which is suitable for many investors who are looking to manage a broad range of ESG factors within their investments rather than those focusing on a particular issue.
The strategy invests in both developed and emerging markets with a highly diversified portfolio that spreads capital and risk more evenly between stocks compared to a traditional index strategy, where large capital and risk allocations go to the largest companies, Willis Towers Watson said.
The advisory said a number of defined benefit and defined contribution clients have already committed over $900 million of capital to invest in the strategy as part of their core public equity allocations.
“Sustainability is a top priority at Willis Towers Watson. We believe that an investment approach that integrates ESG factors effectively will outperform one that does not over the long term,” said Louise Lew, head of sustainability, Australia, Willis Towers Watson.
“We focus on identifying the best strategies and products for our clients and so we are excited to see the launch of this mainstream sustainability solution for investors.”
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