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Separate Account Managers in Sustainable and Responsible Investing

Strategy Profile:
Quotient Sustainable Alpha Download as PDF for Printing PDF Download

Jump to: About This Strategy | About The Company | Specific Screening Information by Category


About This Strategy - [Return to Top]

Assets Under Management (AUM): $425M (in US$ millions)

Required Minimum: $10 million

Benchmark used: Russell 1000

Strategy type: Equity Large Cap

Strategy description: Through our research, we found that ESG data provides additional return and risk information on stocks that is not currently used in financial analysis. Quotient’s methodology harnesses this return and risk information to find the most attractive investments within each industry in the US market. The firm utilizes a proprietary intra-industry investment process which seeks to identify the price drivers that are unique to each industry. By studying value, growth, momentum, ESG and other custom industry data, Quotient seeks to identify the best stocks within industries to build superior risk- adjusted return portfolios.

Strategy web link: External Link

 

About The Company - [Return to Top]

Institution Name:
Quotient Investors, LLC

Approach to Sustainable & Responsible Investment: Quotient is a boutique manager offering multiple U.S. Equity strategies for institutional investors. Our products include large cap sustainable alpha, large cap value, large cap growth, small cap, and microcap. Environmental, Social and Governance (ESG) criteria are fully integrated into the stock selection process of the large cap strategies. Through our research, we found that ESG data provides additional return and risk information on stocks that is not currently used in financial analysis. Quotient’s methodology harnesses this return and risk information to find the most attractive investments within each industry in the US market. The firm utilizes a proprietary intra-industry investment process which seeks to identify the price drivers that are unique to each industry. By studying value, growth, momentum, ESG and other custom industry data, Quotient seeks to identify the best stocks within industries to build superior risk- adjusted return portfolios.

Total AUM in SRI: $$480M (in US$ millions)

Research conducted: Both internally and externally

Researcher name: Andre Bertolotti, CIO

Contact info:
12 East 41st Street, Suite 1101
New York, NY 10017
USA
Phone: (212) 685-4811
Fax: (212) 685-4707
Email: abertolotti@quotientinvestors.com
Web: http://www.quotientinvestors.com (Opens in a new window)

 

Specific Screening Information by Category - [Return to Top]

Environment

  • Climate / Clean Technology: Combination of Positive and Restricted/Exclusionary Strategies - Quotient's Environmental assessment includes company ranks on Energy Use, Renewable Energy Use, Green Buildings, Cement Energy Use, Energy Efficiency Initiatives, Water Use, Water Recycling, Sustainable Transportation and Biodiversity Impacts. Quotient is a signatory to the Carbon Disclosure Project (CDP)
  • Pollution / Toxics: Combination of Positive and Restricted/Exclusionary Strategies - Quotient's Environmental assessment includes company ranks on Toxic Chemicals, CO2 Reduction, F-Gases Emissions, NOx and SOx emissions, Waste, Environmental Citizenship, Spills and Poluting Controversies and Environmental Compliance.
  • Other Environmental: Combination of Positive and Restricted/Exclusionary Strategies - Quotient's Environmental assessment includes company ranks on Materials, Materials Recycled and Reused Ratio, Land Use, and Environmental Supply Chain Management.

Social

  • Community Development: Combination of Positive and Restricted/Exclusionary Strategies - Quotient's Social assessment includes company ranks on Company Donations, Income Taxes, Awards, Crisis Management, Public Health Controversies, Bribery/Corruption/Fraud Controversies, and Business Ethics Compiance.
  • Diversity & Equal Employment Opportunity: Combination of Positive and Restricted/Exclusionary Strategies - Quotient's Social assessment includes company ranks on Male/Female ratio, Management Equal Opportunity, Work-Life balance, Family friendly and Diversity Compliance.
  • Human Rights: Combination of Positive and Restricted/Exclusionary Strategies - Quotient's Social assessment includes company ranks on Suppliers Social Impact, Freedom of Association Controversies, Child Labor Controversies and Human Rights Controversies.
  • Labor Relations: Combination of Positive and Restricted/Exclusionary Strategies - Quotient's Social assessment includes company ranks on Salariies Distribution, Benefits, Personnel Turnover, Key Management Departures, Strikes, Injuries, Lost Days, and Health & Safety Compliance.

Governance

  • Board Issues: Combination of Positive and Restricted/Exclusionary Strategies - Quotient's Governance assessment includes company ranks on Board Diversity, Board Experience, Percentage of Independent Board Members, Mandates Limitation, CEO-Chairman separation, Board Compensation, Audit Commettee Independence, Nomination Procedures, and Board Attendance.
  • Executive Pay: Combination of Positive and Restricted/Exclusionary Strategies - Quotient's Governance assessment includes company ranks on Stock Option Program, Highest Renumeration Package, Long-Term Objectives, and Compensation Controversies.

Products

  • Alcohol: No Screens - Quotient can easily meet a Client's request to exclude certain stocks from the portfolio.
  • Animal Welfare: No Screens - Quotient can easily meet a Client's request to exclude certain stocks from the portfolio..
  • Defense/Weapons: Restricted/Exclusionary Investment - Quotient can easily meet a Client's request to exclude certain stocks from the portfolio.
  • Gambling: No Screens - Quotient can easily meet a Client's request to exclude certain stocks from the portfolio.
  • Tobacco: Restricted/Exclusionary Investment - Quotient can easily meet a Client's request to exclude certain stocks from the portfolio.

Other

  • Other/Qualitative: Quotient evaluates a universe of 1800 stocks daily to seek investment opportunities. Quotient does not narrow the stock universe but instead generates return, risk, and transaction cost forecasts for each of the 1800 stocks we follow. These forecasts are then used in the portfolio construction process to build and rebalance the portfolios.
  • Proxy Voting: Actively voted by my institution for this investment strategy in support of environmental, social or governance issues in accordance with formal guidelines

 

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