TY - JOUR T1 - Practical Applications of Can ESG Add Alpha? <em>An Analysis of ESG Tilt and Momentum Strategies</em> JF - Practical Applications SP - 1 LP - 5 DO - 10.3905/pa.2016.4.3.205 VL - 4 IS - 3 AU - Zoltán Nagy AU - Altaf Kassam AU - Linda-Eling Lee A2 - Saklatvala, Kathryn Y1 - 2017/01/31 UR - https://pm-research.com/content/4/3/1.7.abstract N2 - Can ESG Add Alpha? An Analysis of ESG Tilt and Momentum Strategies Zoltán Nagy Altaf Kassam Linda-Eling Lee Institutional investors have generally assumed that incorporating ESG into portfolio construction entails a hit to performance, but new research shows that’s not necessarily so.In Can ESG Add Alpha? An Analysis of ESG Tilt and Momentum Strategies , authors Zoltán Nagy ( MSCI ), Altaf Kassam ( State Street Global Advisors ) and Linda-Eling Lee (MSCI), backtest two model portfolios—ESG Tilt and ESG Momentum—and find they outperform the MSCI World Index benchmark.“Over time, approaches [have] developed where you could break even. But there’s still a nagging feeling in the industry that you can’t have your cake and eat it too,” notes Kassam. But they’re confident their more-robust data proves that trade-offs between ESG and performance aren’t inevitable. ER -