Quantitative asset managers are increasingly using qualitative data in their investment processes, including environmental, social and governance (ESG) factors previously dismissed as imprecise. For these managers, ESG factors provide them with information not currently being priced in by other investors, says Matt Moscardi, head of financial sector research for MSCI ESG Research in Boston.Kevin Bourne, London-based managing director of databases at FTSE Russell, agrees: "ESG data is essentially Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content. To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe You are currently unable to print this content. Please contact [email protected] to find out more. You are currently unable to copy this content. Please contact [email protected] to find out more.
Quantitative asset managers are increasingly focusing on using qualitative data, such as measures of ESG (environmental, social and governance). "It provides them with information not currently being priced in by other investors," says Matt Moscardi, head of financial sector research for MSCI ESG Research in Boston. However, data on a company's human rights record, for instance, is hard to measure and use to inform valuations.