Redpoint uses two approaches to exclusionary screening, based on client requirements.
The first approach uses our proprietary rating, which draws on all three domains of ES and G information and integrates that with long-horizon quantitative financial signals.
- We apply the screening globally, eliminating between 10% and 60% of a benchmark universe (benchmark dependent).
- We hold all stocks to the same standard rather than apply a best of sector approach.
- Any country and/or industry and sector biases, introduced by the screening, are managed in the portfolio construction process.
The outcome is a portoflio, with above average ESG scores.
The second approach screens on product, activity and/or sector-membership, driven by each client's own policies.
Either approach can be used standalone, or as a base for an enhanced strategy that uses alpha metrics that integrate ESG considerations.