xysoom
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| Posted: 30 June 2020 at 09:33 | IP Logged
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4 recommendations from Russell Investments
Analysts at Russell Investments have outlined a group of
stocks across sectors that satisfy their criteria for
strong returns and ESG (environmental, social, and
corporate governance) investing standards. The investment
manager, which sources its ¡°do-good investing¡±
framework from the ESG research provider Sustainalytics,
recommended names including tech giant Intel.¡°By
identifying some doing good metrics, we are able to
evaluate some sector leaders that have been doing good
and evaluating their ability to do well at the same
time,¡± the analysts wrote.Visit BI Prime for more
investing coverage.To get more news about
W
ikiFX, you can visit wikifx news official website.
¡¡¡¡The coronavirus pandemic has renewed questions that
have long surrounded sustainable investing strategies.
Market participants are scrutinizing companies' crisis
responses as it relates to shareholders, employees, and
customers ¡ª or ¡°stakeholders¡± ¡ª alike.Critics have
questioned how investors can square a restrictive
environmental, social, and corporate governance framework
with achieving strong returns, and the lack of a
standardized ESG criteria hasn't helped skeptics.The
turbulence has put these strategies to the test ¡ª and
Wall Street analysts and strategists on have noted for
weeks that do-good investing funds have fared better than
the broader market during stocks' unprecedented
volatility.Investor flows into ESG funds ¡°have not been
hindered¡± by the sell-off, Barclays strategists said in
an April 29 report.
¡¡¡¡¡°The resilient performance of ESG funds in dire
market conditions is noticeable, which will likely
continue to fuel demand and inflows from investors, in
our view,¡± they wrote, noting the likely explanation for
the stocks' strength is the ¡°clear overlap¡± between
names that fit quality and growth investing styles.At RBC
Capital Markets, strategist Sarah Mahaffy noted in late
March that companies with ¡°better overall ESG risk
profiles have outperformed those with worse ESG
profiles¡± during the downturn, Business Insider
reported. Two-thirds of actively managed sustainable
equity funds beat their benchmarks in March, Mahaffy
said. And while every corner of the market is under its
own kind of duress, ESG fund losses have been less severe
than the wider market's redemptions. Of 17 exchange-
traded and mutual funds with more than $250 million in
assets that S&P Global Market Intelligence analyzed in
mid-April, 12 had fared better than the S&P 500. ¡°ESG
fund managers said their focus on nontraditional risks
led to portfolios of companies that so far have been
resilient during the COVID-19 downturn,¡± the firm said,
adding the top performer in its analysis had lost 5.4%
for the year through April 9, compared with the S&P 500's
13.7% decline.
 29/637290494704348914/ART637290494704348914_925480.jpg-
wikifx_articlepic">
¡¡¡¡Other firms are taking note of the solid performance
they believe can be found in companies that also fit the
bill for ethical investing. Russell Investments, which
manages some $270 billion in assets, in a recent report
picked a group of stocks they say showcase healthy
returns ¡ª ¡°doing well¡± ¡ª along with ethical or
sustainable features ¡ª ¡°doing good.¡± The investment
manager's analysts defined ¡°doing well¡± in a financial
sense as ¡°strong excess over index and excess over
sector returns for three years trailing December 2019,¡±
and a company ¡°doing good¡± as ¡°a bit more loosely in
acknowledgement that there are many ways one can either
measure or track goodness.¡± Russell Investments also
relies on ratings and data from the firm Sustainalytics
for sussing out which companies have a strong
sustainability track record.¡°By identifying some doing
good metrics, we are able to evaluate some sector leaders
that have been doing good and evaluating their ability to
do well at the same time,¡± the analysts wrote. ¡°From
our perspective, it is definitely possible, but requires
skill to get the balance right.¡±
¡¡¡¡Here are the four stocks they picked to showcase
stocks with strong returns and meet their ethical
investment standards.
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Topic: 4 recommendations from Russell Investment
