California-based investment house Research Affiliates has launched a strategy based around environmental, social and governance (ESG) factors.
The Research Affiliates Fundamental Index (RAFI) ESG strategy, which will be marketed worldwide, will use smart beta factors to combine its dual objectives of social responsibility and long-term outperformance.
“We wanted to deliver a transparent, broadly diversified, and customizable ESG strategy without sacrificing returns,” said Vitali Kalesnik, partner and head of equity research.
BNP Paribas will provide marketing support for the implementation of the strategy.
Research Affiliates plans to launch a stand-alone RAFI diversity strategy later this year.
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