40: Integrating ESG into a factor portfolio

As record numbers look to integrate sustainable investment considerations into their portfolios, it comes as no surprise that the world of factor-based investing is not immune. According to a 2018 survey conducted by FTSE Russell, 55% of factor investors are looking to incorporate environmental, social and governance (ESG) company analysis but as yet, there’s been no well-defined blueprint as to how this can be comprehensively achieved. Joining Eliza are Adam Willis and Dave Barron to discuss the ins and outs of factor index construction and how schemes are building their factor portfolios to not only potentially outperform traditional market-cap index trackers but also integrate ESG analysis simultaneously. David’s article “Responsible investing: factor friend or foe?” is available here: http://www.lgim.com/uk/en/insights/our-thinking/market-insights/responsible-investing-factor-friend-or-foe.html •    David Barron, Head of Equity Index •    Adam Willis, Head of Index and Multi-Asset Distribution •    Eliza Grimond, Investment Writer We want to hear from you! Email us at [email protected] with your thoughts on the podcast and any suggestions of the types of content you’d like to see covered. This podcast is intended for investment professionals, and shouldn’t be shared with a non-professional audience. This podcast should not be taken as an invitation to deal in Legal & General investments. Any views expressed during this recording belong to the individuals and are based on market conditions at the time of recording, and do not reflect the views of Legal & General Investment Management. Legal & General Investment Management is authorised and regulated by the Financial Conduct Authority. Legal & General Investment Management, One Coleman Street, London, EC2R 5AA. Register in England no. 2091894. All rights reserved. No part of this audio may be reproduced in whole or in part without the prior written consent of Legal & General Investment Management.