A values-aligned investment manager for faith-based organizations sought to transition its global equity portfolio from an exclusionary mandate to a customized solution that provided a significant carbon emissions intensity reduction and maintained alpha and risk targets.
PGIM Quant’s customized portfolio overlay solution:
- Reduced total portfolio carbon emission by more than 50% relative to the benchmark.
- Improved the overall ESG profile by 20% while avoiding the worst ESG offenders in the benchmark.
- Produced a well-diversified portfolio with constraints to prevent overexposure to any country or sector.
- Maintained the fiduciary targets for risk and return.
