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ESG Investing: A Social Uprising
- Companies with good or improving social characteristics have tended to outperform their lower-ranked peers on average by 15bps per month from 31 December 2008 to 30 June 2018.
- This bolsters our decision to include social factors in our idea generation for the Hermes Global Equity ESG strategy since inception in 2013.
- The stock-selection process of the Hermes Global Equity Core strategy, which only integrates the governance component of the QESG Score, will be enhanced to include social factors for markets outside North America.
- The FAANGs – major US technology stocks that have driven the market recently – have disrupted the usually consistent performance of the governance factor, making it particularly ineffective in the past 12 months.
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