John Ruggiero, Ph.D.
Finance and Economics
There has been a new movement for investment funds to align with investor morals. They are known as Environmental, Social, and Governance (ESG) funds, and have become a strong focus for asset management firms. Currently these funds have a negative stigma because most investors believe that due to added constraints on these portfolios, they will not be able to outperform non-sustainable portfolios. This is why the sustainable investment portfolios will be created. The portfolios undergo two focuses. The first portfolio employs a negative screening, which means that the portfolio will exclude specific industries that are deemed unsustainable. The other portfolio undergoes a positive screening. This means that there are specific parameters that focus on green initiatives. The purpose of these sustainable portfolios is to show investors that they can have strong returns compared to their benchmarks and still align with their values.
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Business | Finance and Financial Management | Portfolio and Security Analysis
Carey, Douglas Stephen, "Sustainable Portfolios to Maximize Alpha" (2017). Honors Theses. 93.