Arrowstreet is a discretionary institutional global asset manager. We offer institutional investors a select range of global equity investment strategies.
Our investment process utilizes quantitative methods that focus on identifying and incorporating investment signals into our proprietary return, risk and transaction cost models. Our investment approach involves creating and investing in diversified equity portfolios. We utilize a structured investment process that attempts to add value relative to a client specific benchmark. This involves identifying opportunities across companies, sectors and countries by evaluating a diverse set of fundamental and market-based predictive factors. Portfolios are constructed through the use of a mean variance optimizer utilizing proprietary risk and transaction cost forcasts for future returns.
Our research focuses on identifying, thoroughly testing, and incorporating investment signals into our quantitative alpha and risk models. We understand that environmental, social, and corporate governance (ESG) considerations can impact businesses’ profitability and sustainability of earnings, in addition to the risks associated with their securities. As such, we evaluate and selectively incorporate ESG information into our investment process.
At a client’s request, we can also apply exclusionary screens, group restrictions, or a combination of the two that accommodate a variety of responsible investment considerations and restrictions specified by the client that may generally prohibit the purchase of certain securities, either individually or by region, sector, or other designated class.
We offer ESG specific proxy voting services to clients upon request. The proxy services we provide are outsourced to a well-known third party service provider. Our proxy service provider is responsible for monitoring events affecting the issuers of securities as required to cast informed votes; making decisions on voting securities and voting the securities in a timely fashion; and maintaining necessary records.
We also have a Responsible Investing Committee that meets semi-annually to discuss our approach to various ESG related issues, both in our investment process and in our internal business practices.