%0 Journal Article %A Zoltán Nagy %A Altaf Kassam %A Linda-Eling Lee %A Kathryn Saklatvala %T Practical Applications of Can ESG Add Alpha? An Analysis of ESG Tilt and Momentum Strategies %D 2017 %R 10.3905/pa.2016.4.3.205 %J Practical Applications %P 1-5 %V 4 %N 3 %X Can ESG Add Alpha? An Analysis of ESG Tilt and Momentum Strategies Zoltán Nagy Altaf Kassam Linda-Eling Lee Institutional investors have generally assumed that incorporating ESG into portfolio construction entails a hit to performance, but new research shows that’s not necessarily so.In Can ESG Add Alpha? An Analysis of ESG Tilt and Momentum Strategies , authors Zoltán Nagy ( MSCI ), Altaf Kassam ( State Street Global Advisors ) and Linda-Eling Lee (MSCI), backtest two model portfolios—ESG Tilt and ESG Momentum—and find they outperform the MSCI World Index benchmark.“Over time, approaches [have] developed where you could break even. But there’s still a nagging feeling in the industry that you can’t have your cake and eat it too,” notes Kassam. But they’re confident their more-robust data proves that trade-offs between ESG and performance aren’t inevitable. %U https://pa.pm-research.com/content/iijpracapp/4/3/1.7.full.pdf