
A fiduciary wanted to offer plan members investment options which incorporated ESG priorities, as well as increase the diversity of its manager slate. However, it needed to ensure that the expected performance of these options was at least as good as available alternatives which lacked these characteristics.
Empirically conducted a quantitative analysis of the ESG-aware and diverse-managed strategy candidates. It identified which ones showed evidence of equal or better manager skill, and which had the lowest probability of underperforming the existing line-up over the next 3 and 5 years.