This past week we have been both outraged and heart-broken watching protests against racial injustice unfold across the country. We at Omega Point stand in full solidarity with the black community to fight systemic racism. We pledge to do our part to listen and to learn more about how we can impact change using the resources and tools available to us within the investment management industry.
We believe it is imperative that the investment industry unite in driving broader social change, and we stand by you to help implement socially responsible practices into your investment process.
What Are The Social Factors?
Our data partner for ESG factors is OWL Analytics, a data company that aggregates and optimizes over 100 million ESG data points for 25,000+ companies across 400+ sources of ESG research. This broad analytical foundation eliminates much of the subjectivity inherent in tracking non-standardized investment themes. The purpose of measuring companies against these ESG factors is to quantify how well a company manages their material risks and opportunities relating to their impact on the environment, their stakeholder relationships, and their internal governance procedures.
Measuring the Investment Importance of Social Factors
Last summer, we published a Factor Spotlight on Socially Conscious investing. To summarize this piece, we found that our portfolios built to isolate the Social factors ALLshowed positive performance between Jan 2015 and June 2019. These portfolios were designed as long/short market and sector neutral with a pure focus on the Social factors. Below is a summary table showing this insight.
The Multi-Trillion Dollar Question - Can The Investment Community Unite For Social Change?
This week, we were encouraged to see bold actions to the Black Lives Matter movement taken by many companies, including Bank of America and Nike. As a community that invests trillions of dollars each year into the financial markets, we can make an impact of immense proportions not just this year, but every year.
US & Global Market Summary
US Market: 6/01/20 - 6/05/20
Please let us know if you’d like more info on ESG data, Socially Responsible Investing, and/or would like to analyze your investment process along this lens.