Responsible investing issues are embedded in our process in the context of our quantitative frameworks for security and peer group valuation. At our core, Acadian seeks investments that are likely to generate the best risk-adjusted returns, inclusive of ESG considerations. We believe that such investments are characterized by strong financial health, solid business prospects, effective corporate governance, and upside potential – traits that are likely to be embodied by sustainable and responsible businesses.
Given this method, our base approach to ESG investing is via integration. Approximately 40% of our assets also use an additional SRI screen, and an additional 1% use both screens and thematic tilts.