Welton launches ESG strategy

Welton Investment Partners has designed a new strategy to meet the COVID-19 market challenge with an ESG focus. The ESG Advantage was set up as a strategy to elevate ESG away from market risk and beyond market-only performance and to deliver superior, uncorrelated returns over the longer term in periods of market expansion and contraction. For investors, officials say, it will be a way to integrate risk-mitigation strategies to improve investor outcomes for sustainable investing in the public equities markets. The $831 million firm’s current strategies include quantitative global macro, systematic trend strategies, equity statistical arbitrage, a variety of multi-strategy and customized investments, as well as the new ESG Advantage offering. “ESG Advantage is designed to provide investors with equity-like returns during bull markets and significant downside protection by mitigating systemic risk during a downturn,” said Basil Williams, CEO of Welton. He added that over the last decade the large majority of ESG funds have underperformed the S&P 500 because they have failed to address systemic market risk. The firm’s view is that ESG can and should do better, he said. The new ESG strategy incorporates two of Welton’s proven quantitative models in new ways to both modulate market exposure and integrate uncorrelated multi-asset class strategies that can protect a portfolio in periods of economic contraction. The model addresses idiosyncratic risk through the integration of best-in-class ESG data from external providers.

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