Our research focuses on identifying, testing, and incorporating investment signals into our quantitative return and risk models. We understand that environmental, social, and corporate governance (ESG) considerations can impact businesses’ profitability and sustainability of earnings, in addition to the risks associated with their securities. As such, we evaluate and selectively incorporate ESG information into our investment process. We incorporate what we believe to be the best investment insights into our clients’ portfolios with the objective to manage conflicts of interest and deliver sustainable alpha on a risk-controlled basis. Consistent with this objective, all alpha and risk signals, including those associated with ESG information, are evaluated in a systematic and rigorous manner prior to inclusion in our process. We have found that some of our existing expected return signals are correlated with ESG measures.