Acadian believes that well governed businesses with responsible business practices have the potential to make a positive contribution to our portfolios over time. Our investment approach is highly systematic and uses quantitative models to assess stocks.We incorporate Environmental, Social and Governance (ESG) considerations in our investment process as return-seeking and risk-mitigating factors. Acadian became the first quantitative manager to sign the United Nations Principles for Responsible Investment (UN PRI) in 2009, demonstrating our recognition of the importance of these issues.
Attributes & Approach
Acadian integrates factors into our core investment process along three dimensions:
Integration: Acadian believes that non-financial considerations may impact investment returns and risk, and hence we integrate an analysis of such issues in our investment process. We hold ESG standards to high levels of materiality in an effort to maximize risk-adjusted returns. For clients who require an additional tilt toward Sustainability, we offer a variety of solutions in an effort to provide a consistent performance profile.
Active Ownership: Acadian is an active investor, and we maintain our stewardship responsibilities via active ownership. We vote proxies when delegated proxy voting responsibility by our clients, to provide consistency with agreed-on ESG principles. Additionally, we communicate actively with companies where we have significant holdings but view an opportunity to encourage improved corporate behavior on environmental, social, and governance issues.
Governance and Monitoring: Acadian’s ESG approach is governed by the firm’s Responsible Investing Committee, comprised of senior executives and chaired by our appointed Director of Responsible Investing. Acadian issues extensive ESG reporting, including regular updates on portfolio characteristics, proxy voting, and engagement practices. While all portfolios have exposure to ESG factors, Acadian additionally offers a suite of Sustainable strategies in Global, Emerging Markets, and Australian equity portfolios.
For more information, please see Acadian's Statement on Responsible Investing.
Acadian is a signatory to the Principles for Responsible Investment (PRI), an active member of ESG-RA (Acadian Australia), and the Japan Stewardship Code. As an active signatory to the PRI, we participate in the annual review of our firm’s responsible investing process and policies. Our Transparency Report is disclosed on the PRI website.